Crypto Hebdo: From Celsius’s liquidity crisis to the bankruptcy of Three Arrows Capital and prospects… – BeinCrypto International

Cryptocurrencies continue to bog down in the bear market as Celsius Network and Three Arrows Capital experience crisis. Bitcoin plunged below $20,000. Ethereum also fell below $1,000. Moreover, the European Union is rushing to regulate the sector. Finally, Circle will launch a euro-backed stablecoin.

Celsius Network on the brink of a cash crisis

On the morning of June 13, the crypto lending platform, Celsius Network, announced the suspension of all withdrawals, exchanges and transfers from its customers due to “extreme market conditions”. However, in reality, this decision would result from a liquidity crisis that the platform is experiencing following the collapse of Terra and the worsening of the bear market.

A report by Nansen showed that Celsius sold nearly $420 million worth of UST. Experts also traced a $320 million transfer of funds from the lending platform to the FTX exchange. Worse is potentially yet to come, as the company could liquidate its stETH token reserves. This case is now beginning to worry the American stock market authority; several branches of the SEC have initiated investigations into the scandal around Celsius Network.

To learn more, read the following article:

👉: Better understand the Celsius Network affair and its consequences on the crypto sphere

Three Arrows Capital faces bankruptcy

The Singaporean crypto investment fund is facing margin calls after a series of liquidations from its creditors. According to what was reported The Wall Street Journal the company is in the process of recruiting legal and financial advisers as it considers the sale of its assets. 3AC has already seen 400 million of its assets under management liquidated.

The amount of liquidation of assets on 3AC could be much higher. A source close to TerraForm Labs revealed that the investment fund purchased UST tokens on Anchor Protocol. Reports confirmed by @defiedge, the expert added that Three Arrows Capital’s investment in UST was $559.6 but is currently only worth $670.

To learn more, read the following article:

👉: Three Arrows Capital goes bankrupt

Bloodbath in the crypto market

Cryptocurrencies continue to see red during this crypto winter. After retouching its December 15, 2020 low, Bitcoin plunged below the much-dreaded $20,000 level. Over the weekend, the king coin reached $17,708. Ethereum price also tumbled towards $896. Other cryptos are also experiencing massive losses. According to data from CoinmarketCap, there would be more than 70% of the top 1000 cryptocurrencies whose price is down (-90%) from their all-time high.

The question that arises then more than one person: how far will cryptocurrencies fall? For example, can we see a Bitcoin price cross the $10,000 threshold or Ethereum drop below $100? If the market were to repeat its performance during the crypto winter of 2018, Bitcoin would have to plunge towards $13,000 as this technical level would be 80% down from the $69,000 high, the same level of decline. than that of 2018.

To learn more, read the following article:

👉: Crypto Market Loses $60 Billion; Bitcoin and Ethereum plummet

The European Union wants to speed up crypto regulation

Concerned by the decline of cryptocurrencies, the EU authorities are seeking to implement laws as soon as possible to regulate the sector. Under the pretext of the TerraUSD collapse and the Celsius Network scandal, EU Commissioner Mairead McGuinness is pushing for the EU to enforce strict regulations against cryptocurrencies. Moreover, she had appealed to the United States to collaborate with the EU on this file.

According to the Fortune newspaper, cryptocurrency legislation is expected to be released by the end of March. After the MiCa law which sought to ban proof-of-work in the EU zone and the TFR law which wanted to prohibit any transfer to non-hosted wallets in the event that the sender/beneficiary is not identified, this news should have a much harsher tone.

Commissioner Mairead McGuinness believes that the sector could avoid many scandals if there was a global regulatory framework that would oversee the crypto sphere.

To learn more, read the following article:

👉: Crypto regulations: the law could come into force at the end of June

Circle will issue a Euro-backed stablecoin

The American stablecoin issuer, Circle, will launch a new stablecoin on the market. Called “Euro Coin or EUROC”, this stablecoin backed by the euro will be released on the market by June 30. Much like Tether, which expanded its reach by launching a stablecoin backed by the Mexican peso, Circle, for its part, is looking to appeal to the European market.

If LUGH, the European stablecoin developed with the Casino group in partnership, is struggling to expand in the EU zone, Circle is counting on the popularity of its USDC to win over users in Europe.

To learn more, read the following article:

👉: Circle will launch a stablecoin in Euro

Prospects…

Just like last week, we will refrain from presenting Tops and Flops for this editorial.

The bear market continues to hit the crypto market hard. However, we only want to point out a good recovery in the sector after the bearish day of Saturday June 18th. At the time of writing this article, Bitcoin is up 13% towards $20,200. Same observation for Ethereum; its price rose 20.99% to reach $1,105. Could this movement indicate that the market experienced its bottom over the weekend?

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Crypto Hebdo: From Celsius’s liquidity crisis to the bankruptcy of Three Arrows Capital and prospects… – BeinCrypto International


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