Famous crypto expert Ash suggested that investors deserve the ongoing crypto rally after surviving several adverse events, including SEC enforcement actions and a two-year bear market.
The prices of various crypto assets have continued to surge tremendously following Donald Trump’s re-election. Since Trump’s victory, Bitcoin (BTC) has registered jaw-dropping gains, surging from $68,357 to $89,604 in one week.
Following the election, the premier asset has been setting new all-time highs (ATH) daily, with its latest record reaching $89,604 earlier today. Expectedly, Bitcoin’s remarkable performance has positively impacted other crypto assets, including Ethereum (ETH) and Solana (SOL), both of which have registered substantial gains.
Crypto Investors Deserve This Gain After Surviving These 9 Events
Commenting, Ash suggested that the latest rally across the broader crypto market serves as a reward for investors who survived several major setbacks that wreaked havoc on their investments.
The expert highlighted nine events that introduced a significant downturn in the crypto market over the past few years.
Bitcoin Dip From $69K to $15.4K
At the top of the list is Bitcoin’s massive decline, which saw its price crash to $15,400. This came after Bitcoin surged to its 2021 peak of over $69,000. However, the asset could not maintain its bullish momentum as it encountered heavy selling pressure, leading to its devastating collapse to $15,400.
Terra Crisis
The second bearish event on the list is the Terra crisis, which sent shockwaves across the broader crypto market. Notably, the Terra ecosystem collapse happened in May 2022, when its native stablecoin, Terra USD (UST), lost its dollar peg, thus affecting other tokens within its ecosystem. Specifically, LUNA suffered a significant collapse, crashing to $0 from a high of $119.8.
3AC Fall
Ash highlighted the collapse of 3AC (Three Arrows Capital) as the third major crisis investors witnessed in the past years. This incident occurred in 2022 following the crypto winter.
Notably, 3AC suffered a strained financial position due to a massive sell-off that affected the prices of major crypto assets. Ash noted that 3AC’s valuation plunged to $0 from a whopping $18 billion, causing a ripple effect that impacted other lenders associated with the company.
Voyager and Celsius Bankruptcies
Fourth, Ash mentioned the bankruptcies of two major crypto lending platforms, Voyager Digital and Celsius. It bears mentioning that the 3AC saga affected Voyager, leading to its bankruptcy. However, Celsius Network filed for Chapter 11 Bankruptcy due to plummeting crypto prices.
FTX/FTT Meltdown
The fifth bearish event was the meltdown of prominent crypto exchange FTX, which resulted in the crash of its native token, FTT. FTX collapsed following reports of mismanagement of customers’ funds championed by its founder, Sam Bankman-Fried (SBF).
The development sent shockwaves across the crypto market due to FTX’s dominance and investments in the market. For context, the price of Solana (SOL) crashed below $10 days after the mismanagement revelation, wiping billions of dollars from the market.
USDC De-Peg
The sixth adverse event that wreaked havoc on investors’ portfolios was the de-peg of stablecoin USD Coin (USDC), which emanated from the collapse of Silicon Valley Bank (SVB) in 2023. The stablecoin, expected to maintain a 1:1 ratio to the dollar, lost its peg, triggering concerns among investors.
Binance Bank Run
Ash listed Binance’s bank run as the seventh event that impacted crypto investors. Recall that after U.S. authorities filed criminal charges against Binance, the exchange witnessed major netflows that hit nearly $1 billion in one day. Notably, the exchange dismissed fears of a possible bank run after disclosing its holding of over $67 billion.
Meanwhile, Binance’s legal woes with the U.S. government prompted its founder, Changpeng Zhao (CZ), to step down as the company’s CEO following a plea agreement. He recently completed a four-month jail term.
SEC Enforcement Actions
Multiple crypto entities, including Binance and Coinbase, became victims of the U.S. SEC’s widespread enforcement actions. Crypto prices usually react negatively to every high-profile SEC lawsuit, as investors expressed concerns over the growing regulatory restrictions.
Two-Year Bear Market
Lastly, Ash highlighted how the market remained bearish for two years, with prices of different assets plummeting heavily. The combination of the aforementioned events caused the two-year bear market, with investors’ portfolios losing enormous value.
Interestingly, Ash believes that investors who remained resilient despite these adverse conditions deserve the ongoing uptrend across the market.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
