Cryptocurrencies took a big hit recently due to the collapse of the FTX crypto exchange. FTX was once so big that its founder was one of the world's ten youngest billionaires. It has now imploded into bankruptcy in a dramatic destruction of investor wealth.
The crypto market formed just a little over ten years ago. Its short history offers little guidance as to whether it may recover from a crash of this kind. While Bitcoin has seen nosedives in value before, some economists see this crash as fundamentally different from anything else that has come before it.
Crypto prices in recent years mirrored the signs of a market bubble. In some ways, it resembled the Dutch tulip bulb market bubble that occurred back in the mid-1600s, where speculation drove the value of tulips to extremes.