Part 4/10:
The FTX crash has had ripple effects across the crypto landscape. Cryptocurrency valuations plummeted; the total market capitalization briefly dipped to around $770 billion, the lowest in nearly two years. This decline signals the possible onset of a broader crypto winter—a prolonged period of stagnation and decline in the industry.
While Bitcoin remains one of the few major cryptocurrencies still standing, analysts warn that confidence in the sector may be irrevocably damaged. Many smaller or less established tokens have already vanished, wiped out entirely by the scandal. Experts argue that this episode might mark the beginning of a significant retrenchment in the crypto space, with fewer participants willing to commit capital to such volatile assets.