Cryptocurrency Crash – Beginning of a market shakeout?

The major cryptocurrencies have been on a dramatic slide. Bitcoin is down 70 percent from its peak of around $68,000 in November last year. Similar developments can be seen in other well-known cryptocurrencies.

Some of the so-called “stablecoins,” which promise value stability and are tied to assets like the US dollar, have also collapsed. Crypto lending platform Celsius Network has filed for bankruptcy. All of this raises doubts about the future viability of cryptocurrencies.

Recently, a certain recovery has started on the crypto markets, so that some enthusiasts are proclaiming a new boom phase. After all, the past is characterized by a succession of enormous price gains and drastic slumps. No convincing economic explanations can be found for either the boom phases or the crash phases. Fundamental factors influencing price developments cannot be identified with cryptos.