According to FSInsight, the recent aggressive selling of cryptocurrencies was prompted by a mix of economic headwinds and over-leveraged yield plans. The digital asset market has lost more than $200 billion in sales as a result of this.
Head of digital asset strategy, Sean Farrell, noted that “The decline of terraUSD (UST) and Celsius is long-term favorable for the market,”
Furthermore, according to the note, such open instances of illiterate capital destruction are typically ignored in the traditional banking business. Crypto markets have the advantage of “repeating and developing at a faster rate.”
Massive Borrowing Using An Uncertain Staking Method
“In terms of Celsius,” FSInsight noted, “if revenue-generating strategies appear too impressive, they usually are.” “Notable for promoting ‘risk-free’ profits on customer assets,” according to the crypto lender. The shift necessitated vast amounts of borrowing and risky and unstable staking procedures.
The crypto lender was also “known for promoting ‘risk-free’ profits on customer assets,” which necessitated enormous amounts of borrowing mixed with risky and insecure staking procedures.
“Leverage becomes a lethal double-edged weapon in a tight circumstance, striking when you least expect it,” the note said.
FSInsight expects crypto prices to rise in the year’s second half and feels now is the time for medium- to long-term traders to consider boosting their bitcoin holdings (BTC).
