Easy Money Makes Bitcoin and Crypto Markets Easier

This is an opinion editor by Adam Taha, who hosts an Arabic Bitcoin podcast and contributes to Bitcoin Magazine.

Luna’s infamous collapse was followed by an explosion in Celsius, then Tron suddenly showed hints of death and now Three Arrows Capital is in deep financial trouble. Nobody knows who later, but one thing is certain: more pain is coming. Current market conditions reveal capital and technological problems in the cryptocurrency world. Things are not going well in the web3 header.

How about Bitcoin? For the sake of clarity, bitcoin is not crypto. It is important to distinguish between the two. When I say “crypto,” I mean digital products and innovations that rely on using blockchain technologies to run their projects. As of this writing, there are 19,939 cryptocurrency projects, most of which have appeared in the last 12 months. Why are many of these companies struggling now? How do they fail at a relatively similar time? Are all these projects and companies scams? Did the Federal Reserve cause this? The answer is simply, no. As I said, the market hasn’t had any problems with Web3 and crypto projects, the market is just bring out rot underneath. The problem is a liquidity problem and not necessarily a technical one. In the most recent market movement from autumn 2020 to spring 2022, we witnessed a “gold” rise. This enthusiastic rush to market meant higher competition. Higher competition created an environment where two things emerged:

Leave a Comment

Your email address will not be published.