- Due to the Bitcoin plunge, a crypto specialist warned about the consequences like the 2008 Wall Street Crash.
At present crypto marketplace is performing at its downward trend, hence a crypto specialist warns about the possibility of chain reaction. In a single day, Bitcoin flicks $70 billion drop from its market value.
What is the Opinion of Crypto Specialists?
Lennix Lai, who is the Director of Financial Markets at OXK notifies about the ‘domino effect’ due to the current market scenario. On August 19, a U.K. based newspaper, Evening Standard, reported in which Lai discussed the similar situation in the 2008 crash. He said, “The domino effect we’re seeing among crypto firms is akin to the 2008 financial crash among Wall Street firms.”
He further added, “Both cases resulted from institutions taking illogical risk, largely at the expense of investors,” in his statement.
As per the news report, around 10 crypto firms have sinked and suspended user withdrawal. The massive crypto fall is resultant to the price drop of Bitcoin, Terra-Luna Collapse and bankruptcy of crypto kending firm Celsius.
In 2008 the same situation was noted as many Wall Street firms started dropping one after another due to market house collapse. At that time the borrowers were unable to pay off their mortgages, massive amounts of loan losses on their balance sheets.
The warning of Lai highlights a single day wipe of around $70 billion, which almost destroyed the previous day’s gain of market. Additionally, a crypto trading expert, Michael Van De Poppe, also points out the present market cap as it is under a critical resistance level.
In addition, Bitcoin almost lost around $30 billion from its present market cap in 24 hours. On the other hand, it also loses its bullish phase. While at present, Bitcoin is performing at the price of $21,191.27 with 2.59% down in the last 24 hours.
Source: https://www.thecoinrepublic.com/2022/08/20/crypto-specialist-warns-domino-effect-in-2008-wall-street-crash/