Recent news and events have shaken the cryptocurrency world as the crypto bear market continues its downward spiral. In a single day, the crypto market lost $90 billion in value, and the cause of this devastating market crash can be traced to the collapse of FTX, a major crypto exchange.
FTX Collapse Fuels Crypto Bear Market
FTX was founded in 2019 and quickly became one of the most popular crypto exchanges in the world. On May 26th, 2021, the crypto exchange abruptly shut down, sending shockwaves throughout the crypto world. The news sparked a massive sell-off in the market, and the total market cap of the crypto world dropped from $2.2 trillion to $2.1 trillion in a single day. This collapse of FTX has been dubbed “Black Tuesday” by many.
The collapse caused a wave of panic among crypto investors, who quickly scrambled to sell their assets. The sudden sell-off caused the price of Bitcoin to tumble from $39,000 to $33,000 in a single day, wiping out billions in value. The ripple effect of this collapse was felt throughout the crypto world, with other major cryptocurrencies such as Ethereum and Dogecoin also suffering losses.
Crypto Market Reels From Regulatory Uncertainty
The collapse of FTX has raised many questions about the stability of the crypto market. The cause of the collapse is still unclear, with some pointing to a hack or other malicious attack as the source of the chaos. The lack of clarity has caused many investors to raise concerns about the safety of their digital assets.
Furthermore, the incident has highlighted the lack of regulatory oversight in the crypto world. While traditional markets are heavily regulated, the crypto market is still largely unregulated, leaving investors vulnerable to market manipulation and other forms of fraud. This lack of oversight has caused many investors to reconsider their involvement in the crypto market.
As the crypto market continues to reel from the collapse of FTX, many investors are waiting to see how the market will respond. It is clear that the incident has shaken investor confidence, and many are wondering if the crypto bear market will continue or if the market will soon recover.