As I observe the recent cryptocurrency market crashes, I find myself thinking about it—it doesn’t seem to be just a technical issue. Austin Federa of DoubleZero made an interesting point at Longitude HK.

There was that big crash on October 10th. Many people saw it as simply a matter of market sentiment, but Federa pointed to a more fundamental structural problem. The lack of interoperability between cross-chain systems is one of the key causes of the “why crypto is crashing” situation.

Thinking about it, that makes sense. These days, in the cryptocurrency market, different blockchain networks aren’t properly connected with each other, so information asymmetry is getting serious. Because what happens on one side isn’t reflected on the other side in time, price discrepancies also occur, and situations like “why crypto is crashing” keep repeating.

It was an analysis that as the market grows without the infrastructure being properly in place, inefficiencies are bound to be exposed. To truly understand “why crypto is crashing,” you have to look at these technical limitations. It means that it can’t be explained by market sentiment or external shocks alone.

In the end, for the cryptocurrency market to mature, cross-chain integration needs to become smoother. If you ask why cryptocurrencies are crashing, I think the answer now is improvements to the infrastructure.