Recently, Los Angeles in California has experienced unusually severe wildfires, resulting in damage to thousands of luxury homes, with even Hollywood stars becoming victims. So far, five lives have been lost, and nearly 180,000 people have been ordered to evacuate. Biden, who is about to leave office, was forced to cancel his scheduled trip to Rome today to personally coordinate the government's response to the fire from Washington.

AccuWeather stated on Thursday that the economic losses caused by this wildfire are estimated to reach between $135 billion and $150 billion, including insured and uninsured losses, making it one of the most severe wildfire disasters in modern American history. The total losses and economic damages caused by this wildfire could reach nearly 4% of California's annual GDP.

Local residents and cryptocurrency companies have been affected.

According to Protos reports, this California wildfire not only threatens millions of California residents but also poses threats to several local cryptocurrency companies and well-known figures in the industry. In fact, many have lost their homes and belongings, including precious cryptocurrency hardware wallets. One netizen revealed on Twitter:

My 70-year-old aunt lost her apartment in the Los Angeles fire. Most of her savings are in cryptocurrencies, and she lost her wallet and recovery phrase, with no backup. I feel very distressed; this is all she had.

It is worth noting that as news of the fire emerged, Bitcoin also happened to continue its decline, hitting a low of $91,203 this morning, marking a new low since December 6 of last year.

Typically, the uncertainty brought by disasters tends to exacerbate market panic, and the cryptocurrency market is particularly sensitive to this. Investors' risk-averse psychology may further intensify market fluctuations.

Additionally, the pressure on insurance payouts caused by the fire may indirectly affect insurance companies' investment tendencies in high-risk assets. These chain reactions may further weaken market liquidity and stability.

In response, a crypto KOL in the community shared a screenshot of an article claiming that the recent drop in the cryptocurrency market may be related to the California wildfires.

The Malibu area of Los Angeles has always been known for its concentration of wealthy individuals, including many globally renowned stars and entrepreneurs. However, facing the fierce attack of the wildfire, many lost their homes in an instant. A significant portion of these affluent families holds cryptocurrencies like Bitcoin and Ethereum, which were previously seen as an important part of their investment portfolios.

The head of a blockchain research institution in Los Angeles stated that the recent price fluctuations in the cryptocurrency market may be related to the massive sell-off caused by the wildfires. Many affected families need to quickly liquidate assets to meet rebuilding needs, and selling crypto assets has become the quickest way.

The article also states that Coinbase data shows that within a week after the wildfire outbreak, Bitcoin trading volume from Los Angeles and surrounding areas surged, especially with large transactions. Tech insiders revealed that there is a high proportion of technology talent in Silicon Valley and Los Angeles investing in cryptocurrencies, and the devastating impact of the wildfire forced them to choose short-term cashing.

However, according to investigations in the dynamic area, the above content is likely not real news. First, we cannot determine whether these affected families hold cryptocurrencies like Bitcoin. Furthermore, if we talk about liquidity, their bank cash has not suffered losses. Additionally, Coinbase has not announced any increase in trading volume in the Los Angeles area... It is more likely that this is fake news created in this context.