what just happened proof the market is becoming more matured
After that week of drama, seeing the market bounce back to the 80k level was reassuring. Binance took the loss and absorbed it with SAFU and its treasury. Circle and Tether froze a sizable chunk of the stolen assets onchain. Both firms have deep pockets and the ability to freeze assets
whenever they want.
So it wasn't the market. A couple of very centralized entities stepped in to deal with the situation. The market just chilled out after.
If there's any kind of maturity in the crypto sphere these days, it's definitely not the kind we bragged about in the early days. It looks more like banking tbh. The 2008 financial crisis was the poster child for moral hazard. The argument went something like this: if big players get bailed out, people will stop worrying about where they keep their money and whether their bank is solid. And it basically happened. Once it became clear that big players would always be bailed out, nobody cared about where they kept their money or whether their bank was solid. Why would they? Krugman wrote about moral hazard for years after that crisis.
Now think of a smaller crypto exchange. There's no SAFU. There's no billionaire founder. The question now is: what happens when one of them gets hammered? Nobody's coming to bail those guys out.
less affected by panic from fud which is exactly what this hacking was trying to achieve
Lazarus wasn't trying to spread fud or any false info. North Korea doesn't care about the direction of the price. They've been funding themselves like this for years. The price drop was an unintended side effect.
The bounce wasn't just from people staying calm though. Midterms cleared up and shorts got squeezed badly and had to buy back. Calling it all
"the market being healthy" is a touch generous in my opinion.
Heh! Funny. Nobody hacked the Bitcoin chain, but one company's hot wallet got drained. And the crazy part was holders of Bitcoin with their own keys didn't even have to turn on the TV or check Twitter. Theres a lot more to this week than a positive daily price candle.