Crypto market recently experienced a massive crash that led many investors to lose while some still remained in profits.
Cryptocurrency market experienced a heavy downturn lately following several major reasons. With the start of this year, the crypto market was facing troubles. From Russia-Ukraine war impact to global economic disturbance to Fed interest rate hikes, etc. the crypto industry faced some of the worst times. This strengthens the skepticism and doubts on digital assets being volatile and leads several market players taking advantage of the sentiment.
Crypto regulators get a chance to shift their focus towards crypto regulations amidst the declining crypto market. While others get a chance to acquire beleaguered crypto firms at heavy discount, which is badly affected due to the crypto market fall. Several experts and analysts believe the notion to be true to some extent.
Legal firm RosenBlatt Crypto Expert and Senior Associate – Tom Spiller – said that during the desperate times like crypto winter, players from Wall Street and authorities get a chance to enter and dominate the crypto space. Spiller cited the instance of Goldman Sachs’ initiative to raise funds worth 2 billion USD from investors. The investment banking giant looked upto to acquire crypto lender Celsius using the funds.
Celsius was one among the leading crypto lenders within the crypto industry. However the crypto winter started with the fall of Terra network’s algorithmic stablecoin UST and the crypto lending firm also took the hit. Losing the peg with US dollar made UST stablecoin collapse and ripple effect created due to this instance resulted in massive sell-off across the crypto market. Celsius halted withdrawal operations on its platform and later on filed for bankruptcy.
CEO of Bahamian crypto exchange FTX – Sam Bankman-Fried – was also the talk of the town during the crypto winter. SBF helped several beleaguered crypto firms while bailing out and acquiring some of them.
Apart from this, regulatory authorities also put their concerns regarding the dropping crypto market. The instance of a 3 trillion USD worth market dropping down below 1 trillion USD is quite a big reason for agencies involvement and asking for regulations on crypto.