What is the catalyst behind the collapse of cryptocurrencies?

What is the catalyst behind the collapse of cryptocurrencies?

Trying to unravel what’s going on in the web3 markets

The web3 market is a mess. Enough is happening that it will take us a moment to unpack the situation this morning, but the leading sentiment indicators in the blockchain ecosystem are nasty enough to set the stage: Bitcoin is down around 13% in the last 24 hours at $23,436; ETH is around 15% off over the same time period at $1,219; The Solana token is down roughly 15% in the last day at $26.75. All three tokens are down roughly 26%, 36%, and 39%, respectively, over the last week.

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The biggest cause for concern this morning appears to be a crisis at Celsius Networks, which raised a large amount of venture capital last year and today halted withdrawals after its token crashed. This doesn’t mean there’s no money flowing in the startup world; even some less tech-focused ideas are busy collecting big checks, as TechCrunch noted today. But in the blockchain domain, what is going on? Let’s take a minute to explore that same question from a few different angles.

What the hell is going on?

While I’m not TechCrunch+’s crypto expert (that title belongs to recent hire Jacquelyn Melinek), I’ve put together a list of issues as I see them that are currently tripping up the web3 market, including everything from crypto to finance decentralized to non-fungible tokens. They are, vaguely: