After two large scandals in 2022, the crypto industry lost over $ 650 billion: bis

After two large scandals in 2022, the crypto industry lost over $ 650 billion: bis
A recently published report by the Bank for International Payment Compensation (BIZ) revealed that the crypto industry lost over $ 650 billion after two major scandals that shook the market last year.
The Report with the title "Crypto Shocks and Retail Losses" explained the trade behavior of investors during and after the scandals, their profits and losses and the effects of the cryptoma market turbulence in the broader financial system.
Small investors bought the dip
Last year there were many terrible incidents in the crypto room that forced several companies to bankrupt, with over $ 1.8 billion being wiped off the market.
Such an event is the $ 40 billion collapse of the Terra-Luna ecosystem in May. According to the BIZ, over $ 450 billion disappeared from the market after the crash.
About half a year later the world's third largest crypto tour FTX Breaked , which took over $ 200 billion from the market.
The BIZ also found that daily user activity on crypto trading platforms last year increased as investors to adapt their portfolios. They tried to move away from the signs that were under stress.
While whales and larger investors sold their stocks, medium-sized owners and small investors increased their Bitcoin positions by bought the DIP. The whales were "probably paid out loudly at the expense of smaller owners".
limited impact on the broader financial system
In addition, the report showed a weak correlation between crypto loss and the wider financial system. The BIZ indicates that crypto scandals only have limited effects on the broader financial sector due to the current level of crypto acceptance.
While individual and institutional investors recorded enormous losses in their cryptoinvestment, the traditional financial system remained intact.
"Our analysis also suggests that the strong decline in the size of the crypto sector has so far had no effect on the broader financial system. However, if crypto had been more intertwined with the real economy and the traditional financial system, the overall effects of a shock in the crypto world could have been much larger," said the bank.
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