current market cap of crypto is $3.67t. there is not $3.67t of liquidity though, which implies a liquidity shortfall. how big a shortfall is anyone's guess, but we can safely assume there is sub $1t in liquidity in the crypto space just based on all the shitcoins. maybe even sub $0.5t. what this means is that the potential for a liquidity crisis in crypto is absolutely massive. if something ever triggered a mass selloff, you could expect crypto prices to fall by up to 83% just based on liquidity shortfall, and maybe even higher if panic sets in, which it likely would. who cares right? fuck cryptobros lel. except this is so big now that it's become a systemic threat. by comparison, the entire subprime mortgage bubble of 2007 was only $1.7 trillion. the bursting of that bubble caused the stock market to drop by half, housing prices to drop by 30%, and 15 million people to become unemployed in the us alone.  any liquidity crisis in crypto will quickly ripple through the real economy, evaporating money supply, destroying investment and skyrocketing unemployment. governments around the world will be again forced to print trillions of dollars to bail out now institutional investors who hold huge crypto bags. this will certainly result in a massive spike in inflation and trigger even higher interest rates which will pop the housing bubble and send home values to the floor. with people out of work and unable to pay their $3200 mortgages, they will be forced to sell their homes which will lead to even more of a crash. this will reverberate back and forth, eventually forming into a crisis bigger than the great depression. when crypto pops this time, it's going to be biblical.
United States