Cryptocurrency instability over the Luna incident

 Terra Luna's collapse and recent sell-offs suggest that this type of business remains risky

The cryptocurrency market is going down so fast that influencers can't do anything about it. Artists like Kim Kardashian, or tech moguls like Elon Musk have posted positive messages about cryptocurrencies, but things are not getting better.

According to some experts, the past period has been scarier than 2018's "crypto winter", which has far-reaching effects because the number of people and organizations holding crypto has been more crowded than it was four years ago. . Observers even compare it to the beginning of the 2008 financial crisis.

"This is like a hurricane," said analyst Dan Dolev, who is in charge of crypto companies and tech finance at Mizuho Group.

During the pandemic, more people are learning and participating in the cryptocurrency market. According to Pew Research Center data earlier this year, 16% of Americans own cryptocurrency, up from 1% in 2015. Major banks like Northern Trust and Bank of America also joined the ranks of crypto-backed companies. number.

The rapid decline in the past week has had serious consequences, sweeping away the assets of many people. Since the beginning of the year, the Bitcoin price has dropped by as much as 40%.

How long the cryptocurrency slump can last is unclear. "It's hard to predict. It's going to take a lot more time to analyze if the market stays the way it is," said Charles Cascarilla, founder of blockchain firm Paxos.
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