What is the real cause of the cryptocurrency market collapse?
The recent cryptocurrency market crash has caused much concern and uncertainty. Here are some key points I learned:
- Decreasing market value: The total capitalization of the cryptocurrency market has decreased sharply, from a peak of about 2,000 billion USD to less than 1,000 billion USD.
- Global economic impact: Although this decline caused many investors to panic and wiped out a large amount of market value, it did not "paralyze" the global economy.
- FTX incident: The collapse of cryptocurrency exchange FTX and fraud allegations against founder Sam Bankman-Fried were among the main events that shook the market.
- Crypto winter: The term "crypto winter" is used to describe a period in which coin prices continuously decline and are difficult to recover over a long period of time.
- The fall of TerraUSD: The fall of stablecoin TerraUSD created a domino effect, leading to the collapse of many other cryptocurrency companies and projects.
This is an important time to closely monitor market developments and consider carefully before making investment decisions. For those interested in price analysis and prediction, using technical analysis tools such as Fibonacci can be helpful in identifying potential support and resistance levels during periods of high volatility like nowadays.
