– The recent Voyager Digital bankruptcy is an example of how the crypto slump is affecting businesses that are overlapping with the crypto industry.
– The bankruptcy was mainly triggered by Three Arrows Capital, a Singapore-based crypto hedge fund that defaulted on a loan of about $650 million that it took from Voyager Digital.
– Regardless of the catalysts that led to this apparently healthy company filing for bankruptcy, the consequences for Voyager and other crypto businesses will be dire.
– However, it’s a good idea to gauge the market before taking any drastic action.
– Bitcoin (CRYPTO:BTC) is the first crypto asset you should keep an eye on. The current reprieve might be just that, a small reprieve from the long-term slump that Bitcoin is destined to go through, or it might be a sign of an actual recovery.
– Galaxy Digital Holdings (TSX:GLXY) is a diversified crypto company engaged in five different crypto-related businesses, including mining and asset management.
– The company is quite aggressively discounted and undervalued.
– Even investors that have a healthy risk tolerance might find crypto investing dangerous right now. However, it’s also the time when fortunes are made.