107085677 1657206915544 gettyimages 1237576865 widak bitcoind220106 npZgt 1 Why this 'crypto winter' is different from any other downturn in digital currencies

Why this ‘crypto winter’ is different from any other downturn in digital currencies

-The crypto crash of 2021 is different from previous market downturns because it was caused by macroeconomic factors and a series of interconnected events. -The collapse of the TerraUSD stablecoin and the UST token caused shockwaves in the crypto industry and led to the forced selling of positions by hedge funds and lending institutions. -The nature of leverage in this cycle is different from the last, with unsecured and undercollateralized lending leading to margin calls and forced selling. -The exposure of numerous crypto firms to risky bets has led to contagion across the industry, with high-profile examples including the default of Three Arrows Capital and the suspension of withdrawals by Celsius.

107085677 1657206915544 gettyimages 1237576865 widak bitcoind220106 npZgt Why this 'crypto winter' is different from any other downturn in digital currencies
Why this 'crypto winter' is different from any other downturn in digital currencies 3

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