The cryptocurrency market is a volatile place where investor demand and supply interact to keep participants, observers, and regulators on their toes. But even as Bitcoin and other cryptos continue to make headlines for their gains, new uses, and potential for disruption, they face headwinds from the real economy.
Despite their claim to be an anonymous form of transaction, cryptocurrencies allow criminals to launder money, evade taxes, and buy illicit items without leaving a digital trail that authorities can follow. This explains their popularity with the Dread Pirate Roberts and other dark web marketplaces, and why government regulators are increasingly concerned about their use.
Amid these risks, some investors seek the safety of stablecoins that are linked to real-world assets. But such coins can also create a dangerous bubble when the market is flooded with hype around them and speculators push prices up. The recent market frenzy surrounding the launch of Stablecoin Company may have been one such example.
Using LexisNexis to code articles in five English-language newspapers, we found that, on average, each day’s media coverage about Bitcoin was associated with one of the following five narratives: criminality, culture, politics, prices, and technology. The top narrative was dominated by articles about alternative cryptocurrencies, non-fungible tokens (NFTs), and trading platforms, but also featured stories about the underlying blockchain. Other topics discussed in the top five included blockchain and financial stability, remittances, and the role of monetary policymakers in regulating the crypto market.
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