Here is the compilation of the essential crypto events of the week.
β Market capitalization fell below $1 trillion
The current bearish trend negatively affects the market capitalization β for the first time since winter 2021, it fell below $1 trillion. Digital assets and financial markets are experiencing extreme volatility. Last week, the Fed announced a new tightening, raising its key rate by 0.75 basis points to 1.5-1.75%.
The US stock market reacted with a decline, while crypto, on the contrary, started to grow. On June 16, Bitcoin rose from $20,000 to $22,700. However, on Friday, June 18, the BTC price continued to decline. A local low below $18,000 was reached on June 19. Today, Bitcoin is traded on KUNA in the $19,800 – $20,700 range.
Altcoins are also in the red zone by weekly indicators, but over the last day, they partially recovered. The second-largest cryptocurrency by capitalization, Ethereum, returned to the level above $1,000, and Dogecoin β to $0.058.
πETH/USDTΒ +11% in 24h
πSHIB/USDTΒ +6% in 24h
πLTC/USDT +5% in 24h
As for forecasts, they differ from expert to expert. For example, the President of El Salvador, Nayib Bukele, advised not to worry about the BTC decline because it will provide profit in the long term. Peter Schiff, a well-known crypto critic and president of Euro Pacific Capital, said it is better to sell bitcoin now and buy it cheaper in the future.
β Celsius risks bankruptcy
The continued decline in cryptocurrencies’ prices is putting severe pressure on the futures market. The issues affected the crypto lending platform Celsius, which suspended withdrawals on June 13 due to “extreme market conditions.” Native cryptocurrency Celsius (CEL) reacted with a drop of almost 50% but soon recovered.
Many argue that such measures were taken due to liquidity problems and the inability to meet customer obligations. Experts explain them by the company’s losses from investments in high-risk DeFi instruments. In particular, synthetic assets Lido Staked ETH and Wrapped Bitcoin. The main competitor of the project, Nexo, announced its willingness to buy out the loan portfolio. Celsius soon hired investment bank Citigroup to find solutions to the crisis.
β Mass liquidations: whales take extreme measures
The downtrend is causing more and more whales’ long positions to be liquidated. The hedge fund Three Arrows Capital (TAC) is currently experiencing a period of extreme turbulence. The media reports that the BlockFi platform had liquidated part of the positions of TAC.Β
BlockFi CEO Zach Prince tweeted that his platform “made its best business decision on a major customer who failed to meet its over-collateralized margin loan obligations.” The media also speculate that TAC has a significant debt to the BitMEX, FTX, and Deribit exchanges; therefore, their positions on these exchanges were also liquidated.
β Dogecoin investor sues Elon Musk and asks for $258 billion
We always say that the most crucial thing in crypto is to rely on your skills and knowledge and not follow advice from the Internet. American Keith Johnson, apparently a Dogecoin investor, decided to sue Elon Musk for promoting the DOGE “pyramid”. The whale will represent a group of individuals who have invested in the meme token since 2019 and suffered losses. Musk is accused of creating “the legitimacy of the project” while “the asset has no value.” Keith intends to get $86 billion in damages and $172 billion in triple damages.
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