Crypto assets are infamous for being highly speculative and volatile, but it is their “debt problems” that have once again made headlines. Since November 2021, the total value of cryptocurrencies has now fallen from a peak of over US$3 trillion (£2.6 trillion) to circa US$830 billion (£706 billion).
This has coincided with a major downturn in global markets due to interest rates going up, but falling prices also reflect a series of collapses and bankruptcies within the industry. These include the Terra Luna blockchain, lender Celsius, the Voyager exchange/brokerage, hedge fund 3AC, and now also FTX/Alameda, which has just filed for bankruptcy.
