• The Bank for International Settlements (BIS) reported that investors outside of major economies were hit hardest by the collapse of Terra and FTX.
• The crypto market lost more than $450 billion after Terra’s implosion in May 2022, and another $200 billion after FTX’s bankruptcy in November.
• The BIS is owned by 63 central banks from around the world.
Crypto Investors in Emerging Economies Hit Hardest
The Bank for International Settlements (BIS) reported that crypto app users worldwide lost money on their bitcoin holdings after last year’s collapses of the Terra ecosystem and the FTX exchange, but it was investors outside of major economies who took the biggest hit. More than $450 billion vanished from the crypto market following the collapse of Terra in May 2022, and another $200 billion was lost following FTX’s bankruptcy in November.
Background on BIS
The BIS is owned by 63 central banks, representing countries from around the world that together account for 95 percentof global GDP. This organization serves as a think tank for international monetary and financial cooperation and works to promote global economic stability through its research and analysis, policy advice, publications, data tools, and other activities.
Impact on Crypto Market
The report stated that U.S investors alone lost $9 trillion due to falling stock prices during this period however losses were much higher within emerging economies as a result of these two collapses. This suggests that non-traditional markets are becoming increasingly important players in cryptos growth trajectory and any volatility should be taken into consideration when making investments decisions within this space.
The report also highlighted several regulatory implications stemming from these events such as an increased need for better monitoring mechanisms to ensure a secure trading environment as well as greater transparency over pricing practices among exchanges in order to protect consumers from potential losses due to market manipulation or scams.
Overall, while last year saw significant losses across all types of investors due to collapsing stock prices, those investing outside of major economies were hit hardest with over 650 billion dollars lost due to two collapses within the crypto market – Terra’s implosion in May 2022 and FTX’s bankruptcy in November . These events have highlighted both risks associated with investing within non-traditional markets as well as an increased need for better regulation within this sector.