Crypto has continued to take blow after blow for the past two quarters, and with the insecurity this breeds, some companies have begun backing out of it. With too much to lose, they are taking a bow before they incur more losses.
The plunge started in Q2 of the year, shortly after top coins like Bitcoin, Ethereum, and Solana recorded their highest prices. The year before was a great one for crypto. It carried that success into the Q1 of 2022, but it all came crashing down the surge, with Ethereum going as low as $900 at a point and Bitcoin dipping far below the high it started the year with.
The plunge has pushed individuals to bow out of the blockchain industry. While volatility is not new to crypto, there are still those with the fear of it dipping more and then incurring even more loss, and with how the market is looking so far, it may seem as though this bearish trend will last towards year’s end.
Celsius recently pulled out of crypto with a worth of 17-23 million dollars. Just before the company filed for bankruptcy, it was revealed in recent court details that the CEO and CSO of the company had allegedly pulled out different cryptocurrencies from the accounts of their custodies.
Celsius also froze its customer’s accounts. Celsius Network is a now-bankrupt cryptocurrency lending company. The company saw its end in Q3 of this year, after which its customers took them to court, claiming they withdrew from the company.
Leaked audios also show that the companies’ senior executives held meetings on reorganizing the loan company, which included issuing tokens for the company’s debts and maybe shifting to crypto custody.
With a company like Celsius Network filing for bankruptcy and bowing out, it leaves you wondering how many other companies or individuals will be taking a bow from the blockchain industry, it is just two months towards the year’s end, and the bearish trend has continued for months on end, loses have continued to pile up. Companies may eventually be pushed to pull out with whatever is left of their worth so they don’t lose even more.
The Crypto Plunge
The plunge in June 2022 was from the Celsius network pulling out, freezing withdrawals, and transfers, as they cited extreme conditions. This move by Celsius triggered a significant slump in crypto assets. With the value falling so far, it surpassed the loss from last year, January.
Another reason for the plunge could be attributed to the Luna-Terra drama. The effects of the fiasco did not only have a considerable impact on the crypto investors and the crypto ecosystem in general, with investors lost entire life savings that had been put into Luna as a safety net.
Another reason for the crypto plunge is the whispers of a possible recession and a rise in interest rates, the war in countries like Ukraine, and a fresh hit of inflation, all of which now have a bearing on not just the stock market but crypto.
Crypto, generally volatile, will often experience an upward and downward trend.
Can Crypto Rise Before More Companies Pull Out?
There is every possibility that crypto will rise. Still, with how it took a few years for crypto to rise to its 2017 status, it might take a while for it to get back to its 2021 high analysts have stated positive things about how high the prices can get by 2023 ending and how it may succeed in getting to the high it was at for the first quarter of this year. Still, these are only speculations. The market has the first to reach a level of stability. For now, its bearish trend is not likely to stop as the catalyst surrounding the crash has not let up.
There is no definite way to tell if more companies will file for bankruptcy, pull out of the market, or experience a total crash like Luna, but the trend is not looking promising for most.
Crypto will regain its former glory, it may take a while, but with how the crypto market works, there will be another time when the market will be at an all-time high. It may even surpass what it was in quarter 1 of this year.