A regulatory probe into a major stablecoin issuer introduces liquidity uncertainty across the market. Confidence shocks may trigger redemptions, temporarily shrinking settlement liquidity and increasing volatility. Traders might de-risk, rotate into alternative stablecoins, or unwind leverage. The event underscores how regulatory pressure directly impacts market stability and risk appetite.
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12-second $25M heist reveals critical flaws: un-audited smart contract loopholes, slow validation, and exchange API gaps. Infrastructure risks include centralized custody weaknesses. Mitigations: multi-sig wallets, real-time monitoring, and third-party audits (e.g., CertiK). Avoid projects lacking robust security.
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The $17B Bitcoin options expiring end-September, with $110k strike prices, create short-term price gravity. Traders adjust positions to avoid losses, pinning BTC near $110k. Volatility may shrink pre-expiry as market makers hedge. Post-expiry, if $110k holds, volatility could rise; a break may trigger 5-8% swings in either direction.
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