0x0 24 The Great Crypto Crash: All the Big Layoffs, Record Withdrawals and Bankruptcies

The Great Crypto Crash: All the Big Layoffs, Record Withdrawals and Bankruptcies

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-Embattled crypto lender Celsius filed for bankruptcy this week and became the latest casualty of a bear market that continues to leave a path of destruction in the digital currency sector.
-Fears of global recession and the worst inflation in more than 40 years have wreaked havoc on the nascent cryptocurrency market this yearunleashing a fierce crypto winter thats forced once high-flying firms into bankruptcy and pushed investors into panic-selling mode.
-The turmoil has already claimed trillions of dollars in market value, billions of dollars in frozen funds and thousands of jobs, but current casualties may only mark the beginning of the storm.
-Marcus Sotiriou, an analyst at London digital asset brokerage GlobalBlock, tells Forbes, noting that close to a dozen firmsincluding Peter Thiel-backed Vauldface an uncertain fate after locking customers out of their funds or initiating restructuring proceedings over the past month.
-Its going to be a sustained period of pain, he says.
-There will be others that come forward with troubleI dont think it ends here,
-Sotiriou posits this downturn could last up to 12 months unless persistent inflation soon cools down, allowing the Federal Reserve to ease up on aggressive interest rate hikes that make risky assets less attractive to investors. Analysts arent so sure that will happen.
-This is necessary for any financial market to mature and evolve, argues Matteo Dante Perruccio, a partner at crypto investment firm Wave Financial who envisions that cryptocurrency prices will take at least six monthsand up to two yearsbefore recovering, similar to cycles past.
-But this time, theres a difference, he adds, pointing to a wave of institutional moneyfrom the likes of Tesla, Goldman Sachs, Morgan Stanley and morethat fueled widespread adoption during the pandemic: When we inevitably come back into an appreciating market, its going to be more sustained and healthier, with less speculation and more tried and true investment philosophy.
-As crypto investors wait for brighter days ahead, Forbes is tracking all the carnage from the latest crypto winter, including layoffs, price plunges and record sellingas well as the lifelines and acquisitions that may help cushion the blow.
-Low interest rates and government stimulus measures fueled skyrocketing cryptocurrency prices during the pandemic, but the Federal Reserves decision to curb rising inflation by hiking interest rates has since battered investor sentimentushering in some of the crypto markets biggest losses in history.
-After amassing a record value above $3 trillion in November 2021, the cryptocurrency market posted its worst first half ever and has plummeted to about $920 billion, a roughly 60% drop this year, according to CoinGecko.

 

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The Great Crypto Crash: All the Big Layoffs, Record Withdrawals and Bankruptcies
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