One cryptocurrency analyst has issued a warning about the possibility of a chain reaction as the קריפּטאָקוררענסי מאַרק continues its downward trend, shedding $70 billion from its market value in a single day and being driven by the drop of its most valuable digital asset, Bitcoin (בטק).
Indeed, the Director of Financial Markets at OKX, the world’s second-largest קריפּטאָ וועקסל by spot trading volume, Lennix Lai, said that the crypto industry could be in for a “domino effect” much like the one the פינאַנציעל מאַרק went through in 2008, אָוונט סטאַנדאַרד געמאלדן אויף אויגוסט קסנומקס.
“The domino effect we’re seeing among crypto firms is akin to the 2008 financial crash among Wall Street firms,” he said.
Similarities to the 2008 crash
According to the report, at least ten crypto firms have collapsed or suspended user withdrawals since the year’s turn, with declining Bitcoin price claiming victims across the landscape, including the Terra (LUNA) ecosystem, lending firm סעלסיוס (CEL), and others.
Similarly, back in 2008, Wall Street companies started dropping one after the other after the housing market collapsed and borrowers could no longer afford to pay off their mortgages, overwhelming באַנקס with loan losses on their balance sheets.
As Lai explained:
“Both cases resulted from institutions taking illogical risk, largely at the expense of ינוועסטערז. "
Crypto bears come out to play
Lai’s warnings arrive as $70 billion is wiped from the crypto market cap in a day, eroding the gains achieved in the previous weeks, and leading קריפּטאָקוררענסי טריידינג expert Michaël van de Poppe to opine that the current market cap is facing rejection at a critical resistance level.
As for Bitcoin, the industry’s largest cryptocurrency, it has פאַרפאַלן $ 30 from its market cap in 24 hours, failing to sustain the בוליש momentum of the מעסיק צוויי-חודש-אַלט פּרייַז אַפּטרענד אַז פינבאָלד געמאלדן דעם 15טן אויגוסט.
Meanwhile, Bitcoin was at press time trading at $21,452, representing a loss of 8.8% on the day, and 9.59% across the previous seven days, according to קאָונמאַרקעטקאַפּ דאַטן ריטריווד אויף 19 אויגוסט.
אָפּלייקענונג: דער אינהאַלט אויף דעם פּלאַץ זאָל ניט זיין געהאלטן ינוועסמאַנט עצה. ינוועסטינג איז ספּעקולאַטיווע. ווען ינוועסטינג, דיין קאַפּיטאַל איז אין ריזיקירן.
Source: https://finbold.com/crypto-expert-warns-of-domino-effect-akin-to-the-2008-wall-street-crash-as-bitcoin-plummets/