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Bitcoin closed its worst quarter since 2011 with a 56% drop, Voyager Digital issued a default notice to 3AC due to loan defaults, a market crash, risk of
Bitcoin closed its worst quarter since 2011 with a 56% drop, Voyager Digital issued a default notice to 3AC due to loan defaults, a market crash, risk of default of $4 billion in miner loans, and other events of the week leading up to it.
The 56.2% drop in the price of the first cryptocurrency in the April-June period was the strongest since the third quarter of 2011, when losses reached 67%. During this period, bitcoin fell from $45,000 to $19,884. In the 2014 and 2018 bear markets, the quarterly dynamics did not exceed 39.7% and 49.7%, respectively.
Anticipating the 2007 mortgage crisis, investor Michael Burry acknowledged that the current market situation is the middle of a bearish cycle for bitcoin.
“Adjusted for inflation in the first half of the year, the S&P 500 fell 25-26%, the Nasdaq – 34-35%, bitcoin – 64-65%. There was multiple compression. Then there is the decrease in income. So maybe halfway through,” Burry wrote.
At the time of writing, digital gold is trading around $19,000. In the past week, the asset’s quotes have dropped more than 11%.
All cryptocurrencies in the top 10 by market cap were in the red zone. Solana (-23.3%) and Ethereum (-15.2%) showed the worst dynamics.
According to the CoinCodex service, the TerraClassicUSDT algorithmic stablecoin saw the most price gains among mid-cap digital assets during the week. The price of USTC rose 407% due to increased trading volumes.
The coin of the WOO Network project fell in price stronger than the others. WOO prices fell almost 33%.
The total capitalization of the cryptocurrency market reached $920 billion, with the Bitcoin dominance index falling to 40.5%.
Cryptocurrency broker Voyager Digital has issued a notice of default for its Three Arrows Capital (3AC) fund due to non-payment of a loan. The broker loaned 3AC for 15,250 BTC (over $320M) and 350M USDC. On June 24, the company requested to settle part of the 25 million USDC debt, and then demanded to repay the entire loan in BTC and stablecoin by June 27.
The British Virgin Islands Court ordered the liquidation of the hedge fund. Later, it was understood that Blockchain.com and Deribit platforms were among the creditors who requested this step.
At the same time, the Central Bank of Singapore condemned the fund’s actions and issued a reprimand for providing false information and exceeding the allowable threshold of assets under management.
3AC, in turn, filed for bankruptcy in a New York court. Section 15 of the United States Bankruptcy Code can protect a fund from confiscation of US assets during liquidation.
Bloomberg reports that some mining companies are encountering problems servicing loans secured by bitcoin mining equipment. According to the publication, $4 billion in loans are at risk of default.
JPMorgan analysts believe that mining companies that need liquidity in the third quarter may continue to exert downward pressure on the bitcoin price if mining profitability does not improve. Today, public players account for about 20% of the hash rate.
This week, hosting provider Dynamics Mining terminated a deal with Bitcoin mining equipment and services provider Compass Mining due to unpaid invoices. Second, it announced the resignation of CEO Witt Gibbs and CFO Jody Fisher.
Analyst software provider MicroStrategy purchased an additional 480 BTC at an average price of $20,817. The company has 129,699 BTC, which it bought for $3.98 billion at an average price of $30,664.
The Salvadoran government also purchased another 80 BTC for a total of $1.52 million.
Earlier this week, the Harmony protocol team offered a $1 million reward to anyone who returns $100 million in crypto assets stolen from the Horizon cross-chain bridge or information that could lead to hackers. After criticism from the community, it was raised to $10 million.
Elliptic said the North Korean-linked hacker group Lazarus may be behind the Horizon attack, which is based on an attack vector similar to the Ronin sidechain. According to analysts, hackers have already sent 41% of stolen crypto assets to Tornado Cash.
At the same time, Reuters noted that the collapse of the crypto market has jeopardized the financing of the DPRK’s weapons program, as “hundreds of millions of dollars” in digital assets stolen by hackers could sink.
Leading NFT marketplace OpenSea has reported that user data has been leaked by an employee of Customer.io, an email delivery service. Provided customers’ email addresses to a third party. OpenSea has warned of possible consequences in the form of phishing attempts.
FTX CEO Sam Bankman-Fried believes some third-tier bitcoin exchanges are close to bankruptcy. The billionaire himself is far from altruistic and is not ready to “save” all the troubled companies that “go too far” by attracting new customers by paying generous interest on deposits.
Kaiko analysts also announced tough times for crypto exchanges. In their view, the platforms will be tested by non-native market conditions, the decline in customer activity and the problems of a number of industry participants.
Bitcoin.com founder Roger Ver owes $47 million to cryptocurrency derivatives platform CoinFLEX and has sent a default notice to Bitcoin-Jesus.
Earlier, the company’s president, Mark Lamb, said the company was in trouble because of a “long-time” customer who was given credit on unique terms. There is no liquidation price for its position – it provides liquidity to the platform in return. However, his position became unprofitable against the background of the crisis.
To pay off this client’s debt and continue user withdrawals, CoinFLEX has announced the Recovery Value USD (rvUSD) token.
On June 30, the Gray Glacier hard fork took place on the Ethereum network at block 15,050,000. The sole purpose of the update was to delay the activation of the “difficulty bomb” by 700,000 blocks.
Cryptocurrency exchange Binance aims to help industry participants who are experiencing a “slight liquidity crunch” and are in talks with more than 50 companies. This was stated by the chairman of the platform, Changpeng Zhao.
Earlier, the head of BlockFi Zak Prince said that the American division of the FTX exchange will give the landing platform a revolving loan of $ 400 million and an option to buy the company for $ 240 million.
Zhao noted that Binance may have been the first to take advantage of the buying opportunity, but did not.
A court has ordered the surrender of former Monero chief developer Ricardo “Fluffypony” Spagni to the US Police Service on July 5 to be extradited to South Africa.
In July 2021, law enforcement detained Spagni at the Nashville airport (USA) at the request of South African authorities, who accused him of fraudulent $ 100,000. The case was not with Monero, but related to his work at the South African company Cape Cookies in 2009-2011.
Also on ForkLog:
ForkLog analyzed the most relevant on-chain metrics and learned what to expect from the price of the first cryptocurrency in the short to medium term.
He explained what training cards, DEX, betting and moving average are. They also explained what the Stock-to-Flow (S2F) model was criticized for and what happened to the Ronin sidechain.
Traditional recaps gathered the week’s main events in the areas of cybersecurity and artificial intelligence.
The cryptocurrency industry is attracting a growing number of institutional players. This is evidenced by new investments in infrastructure and the growing interest of companies in bitcoin as an asset class. The most important events of the last weeks are in the ForkLog review.
On June 27, live ForkLog LIVE discussed the latest news and talked about bitcoin and the market. The guests were traders Vladimir Cohen and Ton Weiss.
On June 29, there was another publication with the main topic altcoins. The guests were traders Vladimir Cohen and Vladimir Maslyakov, CEO and CTO of HyperFlex Inshakov Nikita, as well as Sergey Tikhomirov, host of the Basic Block podcast.
Read ForkLog bitcoin news in our Telegram – cryptocurrency news, courses and analysis.
Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
