Tightening monetary policy set off a chain reaction of events in crypto in 2022 - from implosions of projects like Terra, bankruptcy filings of CeFi companies like Celsius Network and the collapse of the FTX exchange. jacksonwoodHQ lays it all out.
Investor interest in crypto was evident as bitcoin and ether both reached all-time highs, decentralized finance protocols grew to record size, the crypto market cap, the non-fungible token market grew exponentially and venture capital firms invested in many crypto businesses.
Investor appetite for risk and speculative asset investments was driven by economic policy that many people believed would continue for years to come. Traders, institutional investors and speculators entered leveraged positions, borrowing money at low rates, which added to the frenzy witnessed in the crypto markets.As central banks reversed course, began to decrease market liquidity and raise interest rates, these speculative asset classes started to slow.
CeFi intuitions were overleveraged, having lent significant funds to hedge funds such as Three Arrows Capital, which lost a tremendous amount of capital in the sell-off that followed the Terra failure. Three Arrows Capital, along with many other leveraged hedge funds, defaulted on loans owed to many CeFi companies and these CeFi companies were forced to file for bankruptcy protection. User funds held on CeFi platforms were frozen and retail investors were not able to remove their funds.
The previously healthy company was discovered to be insolvent, having commingled customer deposits and funds. FTX filed for bankruptcy protection in late November. The previous bailout of BlockFi was reversed and BlockFi was back into bankruptcy court. Crypto markets crashed. The CoinDesk Market Index plummeted to a low of $795 as investors continued their exodus from crypto markets.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
The 20 Best R&B Albums of 2022In 2022, R&B rediscovered its place in the club, pushed into the outer reaches of space, found and lost love (as always) and relished the beauty of the Black experience.
Leer más »
The best comedies on Netflix right now (December 2022) | Digital TrendsNetflix has a great collection of new flicks and uproarious classics to keep you laughing throughout the winter. Check out the best comedies on Netflix now.
Leer más »
Meghan Markle Looks Ethereal in White Louis Vuitton Dress at Ripple of Hope Gala 2022The Duchess of Sussex and her husband Prince Harry were honored at the ceremony for their work with their Archewell Foundation charity.
Leer más »
Amanda Gorman Is Beauty Inc’s 2022 Changemaker of the Year.TheAmandaGorman was awarded the Changemaker of the Year at today's BeautyIncAwards. Get all the details here.
Leer más »
The best Lego sets to buy for kids in 2022, according to reviewsThese are the most recommended Lego sets of 2022
Leer más »