Is BlockFi's bankruptcy a 'crypto winter'?

On Monday, crypto lender BlockFi announced that it officially filed for Chapter 11 bankruptcy as the FTX fallout spreads. It’s only the latest casualty in an uncertain industry besieged by an ongoing “crypto winter” off 2021’s unprecedented highs. And, if reports from Gemini and Genesis are any indication, the ripple will travel further yet.

What is crypto winter?

“Crypto winter” comes from the TV series Game of Thrones, where the motto of the House of Stark is “Winter Is Coming.” This is a warning that enduring conflict could afflict the land of Westeros at any time. The feeling is that an extended period of trouble may be settling over the crypto market.

Why did core scientific bankruptcy?

Austin, Texas-based Core Scientific attributed its bankruptcy to slumping bitcoin prices, rising energy costs for bitcoin mining and a $7 million unpaid debt from U.S. crypto lender Celsius Network, one of its biggest customers.

Which Crypto miners have lost 80% this year?

Shares of other crypto miners including Riot Blockchain (RIOT.O), Marathon Digital (MARA.O) and Hut 8 Mining Corp have all shed more than 80% this year. In its bankruptcy petition, Core Scientific said it has $1 billion to $10 billion in assets and liabilities, and between 1,000 and 5,000 creditors.