Comparing the stock market crash to LUNA/UST crash is not the same thing.
Luna went from $100 to 1 cent.
UST was also meant to be a stable coin, it was sold as being equivalent to stacking your money in a savings account, just stable currency that follows the USD value. Lots of people took their money OUT of many coins, and moved it to UST for "stability" thinking that their nest was safe during the storm. (Of course their trust was misplaced as it was not equivalent to keeping your money at the bank, but that's what they were led to believe)
It's equivalent as if banks were bankrupting all over the place in the United States with no bank insurance from the government.
No common measure comparaison with the SP 500 being down for a few months (or even a few years).
LUNA going down is the equivalent of a single stock collapsing, and a fairly minor one at that. OP is right, this is a generalised withdrawal of equity from volatile investments of all kinds. Exactly the same thing happened with the last market crash.
Only if you consider top 10 coins and top 10 stocks to be of equal quality / stability. IMO, only Bitcoin and Ethereum are "blue chip" cryptocurrency. All others are pink chip.
The crypto market was worth $3 Trillion in November, and it's worth 1.5 Trillion today. It's A LOT of money, but it's a popped cyst at best in comparison to the smallest securities market.
So it's a seismic event, for sure, but it's not systemic. Comparing it to the banking system collapsing with no insurance doesn't make much sense.
The market crash is the inevitable consequence of stopping the pandemic liquidity faucet. We were waiting for this for quite a while now, and with the FED having to rein in two years of crazy, a massive market correction was inevitable. The fundamentals of most companies are still firmly there, so they're mostly underperforming. There'll be casualties, but this was a much needed purge.
Just don't check your 401k balance for the rest of the year.
Luna went from $100 to 1 cent.
UST was also meant to be a stable coin, it was sold as being equivalent to stacking your money in a savings account, just stable currency that follows the USD value. Lots of people took their money OUT of many coins, and moved it to UST for "stability" thinking that their nest was safe during the storm. (Of course their trust was misplaced as it was not equivalent to keeping your money at the bank, but that's what they were led to believe)
It's equivalent as if banks were bankrupting all over the place in the United States with no bank insurance from the government.
No common measure comparaison with the SP 500 being down for a few months (or even a few years).