It turns out that summarizing the current status of cryptocurrency following the past several months is much more complicated than it looks. If one event were highlighted, it would be the November 2022 fall of FTX and arrest of its founder who was “popularly” referred to by his three initials, SBF.
As early as February 2022 during the “Crypto Bowl”, or Superbowl LVI, there were clues of cryptocurrency irrational exuberance. Since then, major cracks have revealed themselves in the crypto industry and beyond.
None of this commentary is to indicate that cryptocurrency is dead; rather, a restructuring or reinvigoration of crypto needs to or is already taking place. Here is a brief timeline of events, compliments of The Wall Street Journal’s Candice Choi.*
- Feb. 2022. Superbowl LVI, shortly thereafter coinciding with Bitcoin falling to $42,000 from a high of near $62,000.
- May 2022. US Federal Reserve begins rate increases in a campaign to normalize interest rates.
- By Nov. 2022. Several crypto funds or lenders cite liquidity pressures or freeze withdrawals.
- Dec 2022. FTX founder arrested in the Bahamas.
- Jan. 2023. The US Securities and Exchange Commission sues two crypto firms over violations of investor protection laws.
- March 2023. One of the cryptocurrency market’s top banks, Silvergate Capital (entity not related to Silicon Valley Bank), says it is shutting down.
Note: strangely, The Wall Street Journal does not include the collapse of Silicon Valley Bank in this particular cryptocurrency timeline.
As of April 2023. Numerous additional indictments, lawsuits or enforcement actions are initiated related to public trading regulation and billions of dollars in frozen cryptocurrency.
The scene is chaotic and not optimal for investing, risk aware or not. Bitcoin is not even at its low, trading around a current quoted “price” of $28,000.
More to come as information and events continue to unfold. With this, wishing you a blessed Easter and Holy season with family and friends.
BUYING CRYPTOCURRENCIES IS EXTREMELY VOLATILE AND RISKY.
CRYPTO EXCHANGES, CRYPTOCURRENCIES AND THE BITCOIN ETF ARE **NOT** FDIC INSURED IN ANY WAY.
*Candice Choi, WSJ.com. March 28, 2023.