Let's be clear about something: this is not "contagion", as if panicking people are causing bank runs against iliquid financial institutions that have strong as

Let's be clear about something: this is not "contagion", as if panicking people are causing bank runs against iliquid financial institutions that have strong assets in the long run. No, this is a ponzi scheme running out of suckers: the fundamental source of crypto growth and liquidity was getting new people and new money in, and that flow largely stopped this spring. Without that inflow, the bubble explodes because it has unsound fundamentals, there is nothing in the crypto space today that could justify a 1 trillion dollars value creation. Maybe some day crypto will create that value and some people want to be there and invest today, but this is only a belief, and a belief shared by enough people and with no basis in reality is called a bubble. Of course, the first to go are the most fraudulent and sketchy shops, like FTX turned out to be, and it would apear they "caused" the crisis, like Lehman in 2008. But the economic reality is that the crisis was unavoidable, it's intrinsic to the limited real world utility of crypto.