The market has taken a beating over the past seven days, and it’s not looking very good at the time of this writing. Bad news came from various fronts, which resulted in close to $400 billion being wiped off the total capitalization in the past week alone. Let’s unwind.
Right off the bat, around the start of the week, Celsius Network – one of the biggest lenders in the cryptocurrency industry – announced that it had halted withdrawals, exchanges and transfers. Users were left without access to their funds. Rumors of liquidations began to spread, causing severe panic across the market. To date, the company remains silent, but the CEO assured that the team is working tirelessly to resolve the issues.
Later during the week, Three Arrows Capital – one of the industry’s largest hedge funds – was also apparently in distress. Analysts revealed that some of their multi-million dollar positions were very close to getting liquidated, raising further red flags for the community.
The result? Bitcoin is currently trading at just over $20,000 – its previous all-time high from 2017. This is also a level that many believe will trigger massive downward selloffs. The cryptocurrency ended up losing 30% of its value, and that’s not even the worst news.
Ethereum shaped up as the cryptocurrency that lost the most over the past seven days – down 40% and trading above the critical level of $1,000 for quite some time now. ETH’s downturn was largely propelled by forced liquidations from the news around Celsius and 3AC.
Top of Form
All in all, the seven days were very difficult for the whole industry. At the time of this writing, there does not appear to be any serious hope for a reversal, so the question is whether these levels will sustain selling pressure.
Market Data
Market Cap: $933B | 24H Vol: $87B | BTC Dominance: 42.2%
BTC: $20,647 (-31.4%) | ETH: $1,080 (-39.6%) | ADA: $0.48 (-22.8%)
This week’s crypto stocks you can’t miss
Three Arrows Capital Eyes Asset Sale or Bailout, confirms the co-founder. The co-founder of Three Arrows Capital – one of the biggest hedge funds in the industry – Kyle Davis – has revealed that the company is exploring different options to meet its challenges, some of which include selling assets and bailing out another company.
Vitalik Buterin Does Not Believe Crypto Could Replace Traditional Currencies. Vitalik Buterin – Ethereum’s co-founder – said that he doesn’t believe cryptocurrencies could replace traditional fiat. He also thinks that if BTC was to replace fiat, this wouldn’t be a good move at all.
Investors not looking to bail out troubled Celsius network (report). Celsius Network’s recent problems continue to escalate. New reports suggest that the company’s former investors are no longer willing to contribute funds to help.
Celsius Crashes 50% As the Platform Halts Withdrawals due to ‘Extreme Market Conditions.’ Celsius Network – one of the industry’s largest lenders and a prominent player in DeFi and CeFi – halted withdrawals, transfers, and swaps. This essentially left users with no access to their funds in the platform.
Elon Musk, Tesla, SpaceX sued for $258 billion Dogecoin ‘Pyramid Scheme’. The billionaire is under legal pressure for his role in encouraging the public to buy the popular memecoin – Dogecoin. The latter is now down about 92% from its all-time high.
SBF Clears the Air on Bitcoin’s Potential for Payments. The CEO of FTX – Sam Bankman-Fried – firmly believes that Bitcoin, as an asset, can actually scale for widespread payments. However, the billionaire believes that this can be done through the implementation of layer-two technologies such as the Lightning Network.
