Over the past month, a large amount of capital has been wiped out of the crypto sector. As prices have been plunging, there has been a severe liquidity crisis across major firms and investors in the space.
What Happened: As a result of major capital in-flow over 2020 and 2021, the crypto and DeFi space had accumulated large amounts of leverage. As cryptocurrency prices fell, Bitcoin (CRYPTO: BTC) dropped from its all-time high of over $68,000 to the $20,000 range. Ethereum (CRYPTO: ETH) has also fallen from its heights of $4,808 to $1,151 currently.
