Issues of market manipulation and security vulnerabilities in the crypto market are undermining investor trust and threatening market stability.
Market Manipulation and Security Concerns
Robert Sasu's analysis suggests that crypto remains vulnerable to manipulation. Institutional players exploit market inefficiencies, while Ethereum’s outdated security exposes users to risks. Despite multiple high-profile hacks, Ethereum's architecture remains unchanged. The Bybit hack on February 21st marked the largest financial heist in history, dampening trust in decentralized finance.
Liquidity Crisis and Institutional Influence
The crypto market has lost over $325 billion since Friday. A sudden $100 billion drop in just one hour highlights liquidity issues. Market-wide selling began with Solana, which plummeted by 22% after its memecoin-driven rally faded. Citadel Securities' transition to a Bitcoin liquidity provider influenced market volatility.
Need for Innovation and Security Upgrades
Historical patterns indicate that sharp declines are common in bull markets, but without major advancements and security improvements, long-term resilience is in question. Crypto's prospects hinge on growing practical applications and restoring investor confidence.
Without innovation and security upgrades, market volatility may intensify, making long-term stability of the crypto market uncertain.
