So why is crypto blocked? It's important to remember that in this latest cycle, crypto assets aren't alone. The stock market has also been suffering a decline, as US policymakers seek to control inflation by tightening the money supply and raising interest rates. Co-founder of automated cryptocurrency trading platform Coinrule, Oleg Giberstein, believes that cryptocurrencies are suffering the same strains as other parts of the economy, leading to falling prices. Following a series of failures among high-profile crypto lenders and questions about the underlying viability of the industry, cryptocurrencies have entered a bear market (dubbed crypto winter by investors) that, to date, has erased nearly five years of Bitcoin gains.
Therefore, cryptocurrency prices are typically quoted in dollars, most cryptocurrency transactions involve dollar-linked stablecoins, and dollar-linked stablecoins are widely used as secure collateral for crypto loans. The cryptocurrency exchange said it hasn't been harmed by cryptocurrency companies seeking bankruptcy protection. The crypto ecosystem has been firmly tied to the traditional financial system, and the dollar dominates crypto markets just as it does in traditional financial markets. Reconsider what you might be more comfortable with in the future, such as allocating less to cryptocurrencies in the future or diversifying through crypto-related stocks and blockchain funds rather than buying cryptocurrency outright (although you should still expect volatility when cryptocurrency markets fluctuate).