It has been a rough time to be in the crypto markets. The bear market has slowly dug its teeth in and has not shown any solid signs of letting up. During the brief times that it tried to break out of the slump, it would fail to and end up back where it had started from. 

There is a wide range of macro-economic reasons that have occurred that have led to this. However, now the crypto space itself is starting to exhibit the same issues which are further weighing on the crypto market and exacerbating issues. When the issues were occurring across the markets as a whole it was one thing but with them appearing within the crypto marketplace itself it is now becoming crypto affecting crypto. 

Of these issues that have emerged the biggest and most prominent issue was the complete and total collapse of the LUNA blockchain and ecosystem. While there has been an attempt to hard fork it and start over the actions that the founder has previously taken made it an extremely hard thing to try and justify building on. His actions were a PR nightmare and affected the blockchain's ability to bounce back after it had suffered such a serious collapse. Now the collapse of LUNA was awful for the industry however the economic data released Friday really hammered home the market. 

This data was beyond awful... Honestly, I cannot even think of a proper word for it but what it triggered was something that I do not think many people saw coming. The collapse in price was a huge hit to different centralized lending companies. When news broke that Celsius was pausing crypto payments, especially in Bitcoin absolutely rocked the markets to its core. Celsius has been around for a while and even had its own token. Many people on this site used to talk up this site along with others like Nexo and BlockFi. The idea that one of these companies that offered the yields they did and were privately backed could possibly go is devastating. 

Even with this terrible news when it rains it has to pours. Adding to the issues is that Binance announced it was freezing withdrawals to the Bitcoin network because of a "frozen" transaction. This is something that just adds a further black eye to crypto today. While I would assume that Binance would be able to fix this pretty quickly the fact that it is an issue well that is itself the issue. 

To end this on a positive note it has been stated that Nexo has already issued Celsius a buyout of all of their assets. Nexo has enough capital they claim to cover not only the purchase amount but also the liabilities that Celsius currently has. This could be a huge thing in covering any sort of failure that could occur. This type of consolidtation does make sense in a bear market and could be something that we see more of over the next few months as companies have to cut back and save capital. Those that have been safe in spending the cash they raise could spring and buy up competitors in distress and thus become the next big thing in the crypto market. 

Please know I am not a financial advisor and make sure you do your own research! If you enjoyed this article and would like to further support me below are a few referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_

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