The year 2022 was not a good one for bitcoin exchanges and businesses in general. Since the beginning of the year, approximately ten cryptocurrency businesses have made the decision to halt withdrawals, and others have been forced to seek protection under the bankruptcy laws.
Huge amounts of wealth have been leaving the cryptocurrency market recently, which has further undermined the significant gains that have been earned over the course of the previous weeks. Bitcoin (BTC), which is currently under significant selling pressure, is also fighting a losing struggle to keep its price above the $20,000 barrier.
Now, a well-known crypto analyst has published a cautionary statement regarding the prospect of the beginning of an effect similar to that of dominoes. Since the market is currently experiencing a downward momentum, this scenario would be comparable to the market crash that occurred in 2008.
The decline in the price of the most valuable cryptocurrency asset, which is Bitcoin, caused a one-day loss of $70 billion for the market. Evening Standard said on the 19th of August that the cryptocurrency business could see a domino effect similar to what the financial market saw in 2008.
OKX is the world’s second-largest cryptocurrency exchange by spot trading volume, and according to Lennix Lai, who is the Director of Financial Markets at OKX,
The domino effect that we are witnessing among crypto enterprises is comparable to the financial crisis that took place among Wall Street corporations in 2008.