Reasons for the Decline Found: Wildfires Have Reached Crypto

[Los Angeles News] Recently, wildfires have once again ravaged California, with high-end communities like Malibu being hit the hardest. The Malibu area is known for its concentration of wealthy individuals, including many globally renowned celebrities and entrepreneurs. However, in the face of the fierce attack from the wildfires, many have lost their homes in an instant. A significant portion of these affluent families hold cryptocurrencies such as Bitcoin and Ethereum, which have previously been regarded as an important part of their investment portfolios.

The head of a blockchain research institution in Los Angeles pointed out: "The recent price fluctuations in the cryptocurrency market may be related to the massive sell-off triggered by the wildfires. Many affected families need to liquidate quickly to meet reconstruction demands, and selling crypto assets has become the fastest way to do so."

Data from cryptocurrency exchange Coinbase also shows that within a week after the outbreak of the wildfires, the trading volume of Bitcoin from Los Angeles and surrounding areas surged, particularly in large transactions. Individuals in the tech industry revealed that the proportion of investments in cryptocurrencies among tech talents in Silicon Valley and Los Angeles is relatively high, and the destructive blow from the wildfires has forced them to choose short-term liquidation.

A representative of an affected family who wished to remain anonymous stated: "We lost almost everything in the fire, but we are grateful for our previous cryptocurrency investments. These assets allowed us to quickly raise funds and start over."