Here are some events that point to more decline in crypto prices
In recent weeks, there have been some incidents around the world that have affected the financial situation of many people. As time has passed, others have emerged that have continued to have an impact on the crypto market. In this report, we take a look at some of these events and the implications they have for the digital assets in space.
Economic problems are growing
Over the weekend, there was news of protests that have been going on in Henan province in China. The protesters had gathered in front of four banks in the province, namely Yuzhou Minsheng Village County Bank, Shangcai Huimin Village County Bank, Zhecheng Huanghuai Village County Bank and Kaifeng Xindongfang Village County Bank. The demonstrators had taken to the streets to air their complaints with the banks.
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The reports coming out of the region showed that while users of these banks had been able to deposit money, they had not been able to withdraw any of their money. Hence the protests in the attempt to get the money back. The economic implications of these on the market were immediately felt with the decline in the market on Monday.
Although cryptocurrencies are still banned in the country, Chinese investors are still very active in the crypto market. Therefore, their ability to participate always has an effect on the market and cryptocurrency prices in the long run.
The Banking and Insurance Authority and the provincial financial authority in Henan province have said they have drawn up a compensation plan for the affected users. But until it is resolved, it will be no surprise to see less participation from Chinese investors.
Market continues to suffer | Source: Crypto Total Market Cap on TradingView.com
The crypto platforms are struggling
In recent weeks, news of liquidations has shaken the crypto market. The latest is the Voyager Digital liquidation that has been in the spotlight. However, new findings have shown even more hiccups with the case as liquidators have revealed that they have not been able to get in touch with the founders of the hedge fund.
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However, that is not the worst. The company had also taken to Twitter to announce that despite the liquidation case, it is not guaranteed that all users will get back all their cryptocurrencies. The majority of these are related to the huge losses it suffered due to its exposure to Three Arrows Capital (3AC).
While the Voyager Digital liquidation case continues, another crypto platform is still holding users hostage. It is now almost a month since Celsius Network had frozen withdrawals, transfers and swap agreements on its platform. The company has continued to pay down its debt aggressively. However, it is still not clear when, or if, users will be able to get crypto back.
Featured image from The Economic Times, charts from TradingView.com
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