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Comment by pclmulqdq | Hacker News Reader

With FTX and now Goldman buying up assets from dying crypto companies, it looks like a bigger crypto crash will now start to hit the rest of the financial markets.

Interesting times coming if there are more issues with USDD and/or tether.

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> With FTX and now Goldman buying up assets from dying crypto companies, it looks like a bigger crypto crash will now start to hit the rest of the financial markets.

Why?

Those companies have connections to the broader financial markets. The traditional thought was that crypto could do what it wants because it's a fairly insulated silo. If it fails, nothing of value fails with it. If it is going to contaminate the rest of the financial system, we are going to need to shut down the shenanigans very fast.

That has never been the modus operandi for Centralised Exchanges for Crypto. This is like saying the Internet could do what it wants because it's insulated from the real world.

FYI most funds have always been holding crypto, bitcoin in particular gives a better yield over any traditional asset in the world over a 10 year period, consistently over 30 years.

What 30 years are you referring to?

But Bitcoin hasn’t been around for 30 years?

So you are referring to a future, bigger crash outside of the current year?

Two possible scary scenarios: an extension of the current crash or the next crash in 2025-2026.

That's a really unbiased insightful prediction.

Stocks have wiped out 7 trillion in value this year. At its peak the entire crypto market was 2.5 trillion and is now 1 trillion. So stocks lost 3 entire crypto markets worth of value this year, seems hard to say that it has the power to contaminate the system just yet.

Why is FTX more connected to Wall Street than coinbase? Only one of them is public

$2B is chump change lol, Bill Hwang/Archegos blowing up in 2021 cost banks $10B in losses.

Crypto is hilariously tiny compared to the actual world of finance. SPY (a single ETF) does as much dollar volume in a single 7.5 hr trading day as the entire crypto market does in 24h, and the entire crypto ‘market cap’ is worth less than half of Apple, one company.

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