Re:Crypto firm BlockFi files for bankruptcy as FTX fallout s...
by totalZero on Tuesday November 29, 2022 @10:07AM
(#33788458)
It's more complicated than that though.
Alternative "assets" like crypto gained more credence when rates were low. Bond returns in such a regime were not attractive, equity markets rallied to elevated levels, and there was little incentive for debt issuers to use free cash to pay down debt that could be rolled out into perpetuity.
The Fed essentially held the cost of money near zero and that had far-reaching effects.
These crypto companies are primarily capitalized by VC and selling crypto.