Author: James Source: blocktempo

Los Angeles, California, USA has recently been hit by extremely severe wildfires, causing more than Thousands of luxury houses were damaged, and even Hollywood stars became victims. So far, five lives have been claimed, and nearly 180,000 people have been ordered to evacuate. The outgoing president Biden was forced to cancel his planned visit to Rome today. , personally sitting in Washington to coordinate the response to the fire.

AccuWeather said Thursday that the economic losses caused by the wildfires are estimated to be as high as $135 billion to $150 billion, including insured and uninsured losses. One of the most severe wildfire disasters in modern American history, the total losses and economic losses caused by this wildfire may be as high as nearly 4% of California's annual GDP.

According to Protos reports, in addition to threatening millions of California residents, the California wildfires also threatened many local cryptocurrencies. Threats posed by companies and prominent figures in the industry. In fact, many people have lost their homes and belongings, including precious cryptocurrency hard wallets. One netizen tweeted:

I am 70 The year old aunt lost her apartment in the Los Angeles fire, most of her savings were in cryptocurrency, she lost her wallet and mnemonic phrase and didn't have any backups, I felt so bad that this was all she had.

It is worth noting that as news of the fire broke out, Bitcoin has also been falling in recent days, hitting a low of $91,203 this morning, the highest level since December 6 last year. New lows.

Usually the uncertainty caused by disasters usually aggravates market panic. The cryptocurrency market is also particularly sensitive to this, and investors' risk aversion may further exacerbating market volatility.

In addition, the pressure on insurance compensation caused by fires may also indirectly affect insurance companies in high Investment tendencies in risky assets, these chain reactions may further weaken the liquidity and stability of the market.

In response, some crypto KOLs in the community shared screenshots of articles saying that the recent sharp decline in the cryptocurrency market may be related to the California wildfires.

The Malibu area of ​​Los Angeles has always been known for its gathering of wealthy people, including many world-renowned celebrities and entrepreneurs. However, faced with the violent attacks of wildfires, many people lost their homes in an instant. A considerable number of these wealthy families hold cryptocurrency assets such as Bitcoin and Ethereum. In the past, these assets were regarded as an important part of their investment portfolios. .

The person in charge of a blockchain research institution in Los Angeles said that the recent price fluctuations in the cryptocurrency market may be related to the massive selling caused by wildfires. Many disaster-stricken families need quick cash to meet reconstruction needs, and selling crypto assets has become the fastest way.

The article also stated that Coinbase data showed that in the week after the wildfires broke out, Bitcoin transaction volume from Los Angeles and surrounding areas surged, especially in large amounts. Mainly trading, some people in the technology circle revealed that technology talents in Silicon Valley and Los Angeles have a higher proportion of investment in cryptocurrency. The devastating blow of wildfires has forced them to choose short-term cash out.

However, after verification by the District, the above content is probably not true news. First of all, we cannot determine whether these victim families hold crypto assets such as Bitcoin. Secondly, if we want Speaking of liquidity, the cash in their bank has not been lost, and Coinbase has not announced an increase in transaction volume in the Los Angeles area... It is more likely that it is fake news created under this background.