The crypto crash and the future of bitcoin — 3 perspectives from an economist, a researcher, and an investor

The crypto crash and the future of bitcoin — 3 perspectives from an economist, a researcher, and an investor

TerraUSD (UST) — a stablecoin that uses an algorithm to maintain its value by keeping it pegged to the US dollar — recently broke away from its dollar peg, which caused its sister coin Luna to lose over 99% of its value. In an interview with Insider, Philipp Sandner, the head of the Frankfurt School Blockchain Center at the Frankfurt School of Finance & Management, said bitcoin and other crypto tokens had been "dragged along" with the crash of UST and Luna. Sandner said the collapse resulted from numerous overvaluations and inflated token prices, which he referred to as "almost monstrous structures" that have emerged in the cryptosystem. But it's not just UST that's causing problems for bitcoin and the crypto world. Rising interest rates also affect prices, said the crypto analyst Timo Emden of Emden Research, a research firm that focuses on cryptocurrencies and blockchain. "The days of 'cheap money' are over." "Rising interest rates are proving to be poison for risky asset classes," he said. "The fear of rapid interest-rate hikes, especially by the US , is taking away one of bitcoin and company's most important stimuli in recent months," he continued, alluding to the of the past