"Where is the crypto market heading?"

Following the all-time highs in the crypto market in November 2021, the crypto market plunged further in May and June 2022 and hit mainstream media for all the wrong reasons. This market plunge and cascade in selling was driven by the LUNA stablecoin collapse and resulting knock-on effects. This caused large losses for some major crypto market players, the biggest being Three Arrows Capital, a crypto hedge fund, which at its peak managed more than $15bn. Three Arrows Capital was a highly leveraged hedge fund whose default and bankruptcy had a negative knock-on effect for most centralised crypto lending businesses, some crypto exchanges and hundreds of crypto projects and funds. This event has plunged the market into a liquidity crunch, a large unwinding of leverage and withdrawal of credit for the whole ecosystem. But this is far from the first such bloodbath crypto has experienced.

Read the full article at: https://alpha-week.com/where-crypto-market-heading (Please note the paywall)

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