Image default
Blockchain

Bitcoin Plummets but is there More Downside Ahead? – Blockchain News, Opinion, TV and Jobs

By Marcus Sotiriou, Analyst on the UK based mostly digital asset dealer GlobalBlock

Despite the Nasdaq bouncing 0.21% yesterday and each the S&P 500 and Nasdaq futures displaying features this morning, Bitcoin continues to plummet. What are the elements contributing to this excessive unload?

Systemic points in crypto infrastructure corporations comparable to Celsius

Celsius are one of many greatest lenders and might doubtlessly change into bancrupt. The Celsius on-chain liquidity disaster has change into more healthy over the previous 24 hours, as they’ve added to their collateral throughout the board for 3 predominant positions. One of those positions involving a Maker wBTC Vault now has a liquidation price of $14k, which was as soon as round $22,500. This is as a result of they’ve paid down extra of their DAI debt.

There is a clearly a excessive stage of uncertainty proper now, in regard to the numerous publicity Celsius has to stETH in proportion to the Curve pool dimension.

I believe many individuals are ready for extra info with their stETH place, to allow them to have faith to purchase once more – if a Celsius deal is reached and publicised this might result in a aid rally.

Insolvency of crypto hedge funds like 3 AC (Three Arrows Capital)

This is one of many greatest crypto hedge funds, and one of many greatest debtors. At its peak, it owned over 5 billion {dollars} of belongings and lots of of hundreds of ETH. If they collapse, this can imply that lenders would incur drastic financial threat. The Profit-Loss distinction between how a lot they owed versus what they get in liquidating their collateral is in danger.

Lenders might be pressured to guard themselves by withdrawing credit score from the system and end in additional de-leveraging of crypto belongings. I believe it is possible that extra individuals have to de-lever nonetheless.

Unwind of liquidity in world markets attributable to price hikes and QT

QE has led to world markets and crypto rising over the previous couple of years, but the alternative has meant that traders are pressured to unwind their positions, notably in risk-on belongings. We have the Federal Reserve rate of interest resolution as we speak at 7pm UK time, which might be decide how aggressive they resolve to be and due to this fact the outlook over the following 6 months. I believe a really aggressive Federal Reserve is perhaps one of the simplest ways ahead for markets, in order that the Federal Reserve will have the ability to resume QE sooner.

Related posts

Security Should be at the Heart of Crypto Ventures, HashCash CEO Says

Crypto Advisor

Yearn Finance Founder Andre Cronje Allegedly to Stop Contributing to DeFi

Crypto Advisor

FTX Ventures Forms Strategic Partnership with Banking app Dave, Invests $100m

Crypto Advisor

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

bitcoin
Bitcoin (BTC) $ 19,170.71 1.21%
ethereum
Ethereum (ETH) $ 1,322.89 1.15%
tether
Tether (USDT) $ 0.998254 0.27%
usd-coin
USD Coin (USDC) $ 0.998495 0.29%
bnb
BNB (BNB) $ 274.71 0.32%
binance-usd
Binance USD (BUSD) $ 1.00 0.10%
cardano
Cardano (ADA) $ 0.446712 1.82%
xrp
XRP (XRP) $ 0.470462 5.12%
polkadot
Polkadot (DOT) $ 6.46 3.19%
solana
Solana (SOL) $ 33.14 0.38%
shiba-inu
Shiba Inu (SHIB) $ 0.000011 1.99%
dogecoin
Dogecoin (DOGE) $ 0.061232 1.54%
staked-ether
Lido Staked Ether (STETH) $ 1,317.61 1.40%
matic-network
Polygon (MATIC) $ 0.755647 0.48%
tron
TRON (TRX) $ 0.05961 0.41%
dai
Dai (DAI) $ 0.998317 0.23%
avalanche-2
Avalanche (AVAX) $ 17.43 1.05%
ethereum-classic
Ethereum Classic (ETC) $ 28.19 1.81%
leo-token
LEO Token (LEO) $ 4.09 5.02%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 19,190.01 1.31%
uniswap
Uniswap (UNI) $ 5.75 0.67%
litecoin
Litecoin (LTC) $ 53.40 0.55%
cosmos
Cosmos Hub (ATOM) $ 14.63 4.52%
okb
OKB (OKB) $ 15.24 0.80%
ftx-token
FTX (FTT) $ 23.90 0.95%
terra-luna
Terra Luna Classic (LUNC) $ 0.00031 33.64%
near
NEAR Protocol (NEAR) $ 3.68 0.54%
chainlink
Chainlink (LINK) $ 7.81 0.37%
crypto-com-chain
Cronos (CRO) $ 0.114262 2.32%
monero
Monero (XMR) $ 144.35 1.26%
stellar
Stellar (XLM) $ 0.114773 3.78%
bitcoin-cash
Bitcoin Cash (BCH) $ 116.26 0.87%
algorand
Algorand (ALGO) $ 0.368066 4.30%
flow
Flow (FLOW) $ 1.64 1.51%
vechain
VeChain (VET) $ 0.022785 0.14%
eos
EOS (EOS) $ 1.18 1.02%
internet-computer
Internet Computer (ICP) $ 6.16 3.02%
filecoin
Filecoin (FIL) $ 5.68 1.33%
chain-2
Chain (XCN) $ 0.074304 3.14%
frax
Frax (FRAX) $ 0.997957 0.10%
hedera-hashgraph
Hedera (HBAR) $ 0.059393 1.89%
decentraland
Decentraland (MANA) $ 0.703292 0.28%
apecoin
ApeCoin (APE) $ 5.50 1.20%
the-sandbox
The Sandbox (SAND) $ 0.857434 2.52%
tezos
Tezos (XTZ) $ 1.47 0.26%
quant-network
Quant (QNT) $ 117.79 2.12%
axie-infinity
Axie Infinity (AXS) $ 12.44 1.59%
aave
Aave (AAVE) $ 75.98 0.32%
lido-dao
Lido DAO (LDO) $ 1.64 1.75%
elrond-erd-2
Elrond (EGLD) $ 46.61 2.93%
theta-token
Theta Network (THETA) $ 1.09 1.26%
true-usd
TrueUSD (TUSD) $ 0.998852 0.08%
chiliz
Chiliz (CHZ) $ 0.252687 4.05%
bitcoin-sv
Bitcoin SV (BSV) $ 51.82 5.18%
compound-usd-coin
cUSDC (CUSDC) $ 0.022673 0.09%
paxos-standard
Pax Dollar (USDP) $ 0.998044 0.20%
kucoin-shares
KuCoin (KCS) $ 8.96 0.27%
bittorrent
BitTorrent (BTT) $ 0.00000078171644 0.60%
ecash
eCash (XEC) $ 0.000041 1.77%
the-graph
The Graph (GRT) $ 0.102346 1.56%
iota
IOTA (MIOTA) $ 0.305317 10.20%
zcash
Zcash (ZEC) $ 57.70 3.89%
huobi-btc
Huobi BTC (HBTC) $ 19,151.99 1.63%
usdd
USDD (USDD) $ 0.99832 0.29%
huobi-token
Huobi (HT) $ 4.51 1.49%
evmos
Evmos (EVMOS) $ 1.98 5.27%
havven
Synthetix Network (SNX) $ 2.33 2.55%
cdai
cDAI (CDAI) $ 0.022081 0.12%
maker
Maker (MKR) $ 693.75 0.07%
bitdao
BitDAO (BIT) $ 0.473366 1.11%
klay-token
Klaytn (KLAY) $ 0.204151 1.11%
neutrino
Neutrino USD (USDN) $ 0.96545 0.85%
fantom
Fantom (FTM) $ 0.228835 0.55%
compound-ether
cETH (CETH) $ 26.45 0.72%
neo
NEO (NEO) $ 8.35 0.57%
helium
Helium (HNT) $ 4.63 4.25%
gatechain-token
Gate (GT) $ 4.19 0.22%
defichain
DeFiChain (DFI) $ 0.76366 2.78%
radix
Radix (XRD) $ 0.059169 0.94%
celsius-degree-token
Celsius Network (CEL) $ 1.49 1.17%
pax-gold
PAX Gold (PAXG) $ 1,637.78 0.10%
pancakeswap-token
PancakeSwap (CAKE) $ 4.59 1.82%
thorchain
THORChain (RUNE) $ 1.61 0.49%
osmosis
Osmosis (OSMO) $ 1.22 1.50%
zilliqa
Zilliqa (ZIL) $ 0.031958 0.73%
enjincoin
Enjin Coin (ENJ) $ 0.466784 0.56%
nexo
NEXO (NEXO) $ 0.925553 0.34%
arweave
Arweave (AR) $ 9.58 0.79%