Crypto Hedge Fund 3 Arrows Capital (3AC) Files For Bankruptcy

Crypto hedge fund 3 Arrows Capital is slated to be another pillar piece of 2022’s bear market headlines, joining the likes of brutal bear market moments that include Terra Luna’s downfall and CeFi’s drama.

While rumors have swirled for several weeks now about 3AC’s status, limited details with concrete information have been released. That’s evolving to close out this week, as new reports have shown that 3 Arrows Capital is filing for Chapter 15 bankruptcy in New York.

A Dozen Headaches & 3 Arrows Makes For Chapter 15

In a bull market, it can all be rainbows and sunshine – and 3 Arrows was certainly seeing that with an AUM at around $10B earlier this year. As the tides have shifted this year, though, so too has the business operations.

The unraveling began in early June with speculation that 3AC was failing to make owed payments, headlined by ~$80M owed to derivatives exchange Deribit. Following roughly a week or so of silence from 3AC co-founders Zhu Su and Kyle Davies, Su posted this this tweet, essentially confirming that 3AC was facing serious liquidity issues:

We are in the process of communicating with relevant parties and fully committed to working this out

— Zhu Su (@zhusu) June 15, 2022

It’s been dominos ever since. CeFi platform Voyager Digital stated that they could lose in excess of $650M due to the 3AC collapse, according to the Financial Times; the platform has since suspended withdrawals and trading. Fellow CeFi player BlockFi also sustained roughly $80M in losses, according to the Times.

This week, 3 Arrows filed for Chapter 15 bankruptcy in New York, following liquidation as well as regulatory inquiries from Singaporean officials, where the hedge fund is based. Chapter 15 is geared towards addressing “cross-border insolvency.”

Strong headwinds for Bitcoin (BTC) this year have exemplified the crypto market’s uphill challenges recently. | Source: BTC-USD on TradingView.com

Related Reading | Leading Crypto Exchanges See Negative Funding Rates, Have The Bears Taken Over?

State Of CeFi: Pulse Check

Centralized finance platforms, commonly referred to as CeFi, aim to take the utility of DeFi and integrate easy-to-use mechanisms and UI to attract more casual consumers with aggressive yields. However, speculation has surrounded a bevy of these firms as speculators suggest that their loans are high-risk and that their liquidity is volatile.

Then comes the subsequent problem – where even if liquidity isn’t an immediate issue for a CeFi platform in a downturn, users belief in potential liquidity concerns leads to a bankrun, and now liquidity becomes an issue because of mass withdrawals. Many believe that some CeFi platforms have engaged in riskier processes to generate yield, which adds another layer of complexity, and for platforms with ties to VC firms like 3 Arrows Capital, things only get even cloudier.

Related Reading | Can This Bitcoin Ratio Have Hints For A Bottom?

Featured image from Pixabay, Charts from TradingView.com
The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.

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Can This Bitcoin Ratio Have Hints For A Bottom?

Past trend of the Bitcoin actual/realized price ratio may be forming a pattern that could hint at a possible bottom for the crypto at $17k.

Bitcoin Actual/Realized Price Ratio Currently Has A Value Of 0.8

As pointed out by an analyst in a CryptoQuant post, historical data of this BTC ratio may have interesting implications for the current market.

The realized cap is a capitalization model for Bitcoin that multiplies each coin in the circulating supply with the price at which the coin was last moved and takes the sum of all the values. This is different from the usual market cap, where the entire supply is simply multiplied by the current price of BTC to get the capitalization.

Now, from this realized cap, a “realized price” can also be obtained by dividing the metric with the total amount of coins in circulation.

Related Reading | New Bitcoin Record Paints Incredibly Bearish Picture As BTC Struggles At $19,000

The “actual/realized price ratio” is, therefore, an indicator that measures the ratio between the normal price of BTC and this new realized price.

Here is a chart that shows the trend in this Bitcoin ratio over the last few years:

Looks like the actual price is lesser than the realized one at the moment | Source: CryptoQuant

In the above graph, the quant has highlighted the major bottoms during previous Bitcoin cycles and the value of the actual/realized price ratio at which they occurred.

Looking at the chart, it seems like during the 2015 bottom, the value of the indicator was about 0.6. And in the 2018 bottom, it was about 0.67.

Related Reading  | Why Bitcoin Could Collapse Another 50%, Says Michael “Big Short” Burry

Currently, the metric has a value of 0.8, which means the price of the crypto is around 80% of the realized price right now.

If there is a pattern here with the actual/realized price ratio, then the bottom this time may also form at a value 0.07 higher than the previous time.

This would put the ratio at about 0.74, which implies Bitcoin will need to decline further until $17k before this “bottom” value is reached.

Naturally, this would only happen if there really is such a pattern present here. Another indicator, the delta capitalization model, suggests that $15k could be a possible lower bound for a Bitcoin bottom.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.2k, down 10% in the last seven days. Over the past month, the crypto has lost 35% in value.

The below chart shows the trend in the price of the coin over the last five days.

The value of the crypto seems to have been going down over the last couple of days | Source: BTCUSD on TradingView
Featured image from Michael Förtsch on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Greek Artist Sends Pro-Freedom Message with Assange NFT Drop

Esteemed artist Miltos Manetas will tokenise 50% of his Julian Assange portraits, with the goal of raising awareness for the imprisoned activist. To further cement the blockchain connection, proceeds of the NFT drop will enter a DAO that forms part of the Venice Biennale Festival’s Internet Pavilion, a tech tent founded by Manetas in 2009.

Named This Cannot Be Erased, the special collection of 111 NFTs will grant buyers access to one-of-one digital versions of hand-painted portraits created by Manetas over the last two years. The collection will be divided into three phases during which 37 tokens are to be minted on the Materia blockchain, starting June 23.

This year’s Venice Biennale, now in its 59th year, runs from April 23 to November 27. While the majority of tents at the festival are reserved for countries, the Internet Pavilion is dedicated to Assange under the theme “AIIA – Assange is Internet Internet is Assange.”

Manetas Aims to Leverage #AssangePower

This Cannot Be Erased was produced by Manetas with support from long-time collaborator Howie B, a British composer who scored the original Internet Pavilion event thirteen years ago. Back then, Manetas and curator Jan Aman stirred controversy by inviting a number of people involved with activist website The Pirate Bay to Venice to inaugurate the Embassy of Piracy.

The latest collection develops Manetas’ interest in freedom in the internet age, with the artist having continually voiced his support for a man he regards as a close friend. The painter, whose digital works have previously appeared on VR platform Second Life, likens the silencing of the WikiLeaks founder to governments attempts to crush dissent on the World Wide Web, leading to the aforementioned theme for this year’s Internet Pavilion: Assange is Internet Internet is Assange.

The 111 NFTs in the collection are curated digital versions of the Assange portraits the artist created as part of the #AssangePower social media campaign. That blitz led Manetas to showcase his creations at Rome’s Palazzo delle Esposizioni and later Belgium’s IKOB Museum with an exhibition entitled Assange Situation – Emergency.

This year, the location of the Internet Pavilion is the vast, prison-like domain of The Gervasuti Foundation, which Manetas considers an appropriate setting given Assange’s ongoing incarceration. The Foundation is located at the north end of Via Garibaldi, on the site of the Gervasuti family artisan wood workshop.

Holders of This Cannot Be Erased will not only own a piece of art history; they’ll also become Trustees of AIIA, with the NFT designated a “currency” of a new internet “country” unbound by borders or barriers. As mentioned, money raised from the sale will go into the Internet Pavilion DAO, meaning art collectors can help decide which art projects the Pavilion funds in the future.

Assange in Limbo

Miltos Manetas has said that his goal is to raise awareness of Assange’s treatment, believing that he has been unjustly demonised for his whistleblowing activities. This view is echoed by human rights organisation Amnesty International, which calls the UK’s decision to extradite Assange to the US a “travesty of justice.”

NFT that make up the new collection last for a minute, during which time the holder sees the face of Assange, fracturing before rapidly coming back together, never to erase. Each artwork is accompanied by a musical theme composed by Howie B.

Assange is currently appealing the UK government’s extradition ruling. If the appeal fails, the activist could face a 175-year prison sentence if convicted in a US court.

 

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Blue Chip NFTs 101: The World Of Women Collection, Including And Conquering

The World Of Women NFT collection has great marketing, strong leadership, and first-mover advantage. Plus, a flourishing community. Also, behind the punks and the apes, these ladies seem to have the biggest celebrity support. From World of Women’s partner Reese Witherspoon to Eva Longoria, to Bryce Dallas Howard; from Snoop Dogg to Gary Vee, everyone wants to be a part of the club. 

Launched in July 2021, the WoW digital collectibles are technically ERC-721 tokens. The collection lives in the Ethereum blockchain, and its high-quality images are hosted on IPFS. Like most successful NFT collections, the images aim at becoming profile pictures or PFPs. The World Of Women consists of 10,000 unique algorithmically generated pieces. The collection’s main artist is Yam Karkai.

Among other things, World Of Women holders get immediate intellectual property rights over the piece they own. And they can download a high-resolution version with ease to use it as they please. They become automatic voting members of DAWOW, the DAO that controls the World Of Women community. And they’re part of a club that each month receives “ArtDrops,” free NFTs from interesting artists from around the world directly into their inbox. Plus, they also get members-only discounts, raffles, pre-sales, and mint passes. 

So, utility is strong in this NFT collection. The main reward, though, is being part of an organization that’s a net positive for women and inclusion worldwide. So far, World Of Women has donated over $250K from the collection’s royalties to women-centric charities all over the world. They even have their own nonprofit, Too Young to Wed’s “mission is to empower girls and end child marriage globally.” World Of Women also commits a percentage of their royalties to buy 1/1 NFTs from women-centric artists.

Recent World Of Women Projects

According to World Of Women’s About Us, this is the organization’s vision:

“WoW’s vision is to build an inclusive web3 through its collection and community. According to research published in Nov. 2021, female artists accounted for just 5% of all NFT art sales in the prior 21 months. WoW is on a mission to change this.”

The original World Of Women collection is only available on the secondary market, the floor price at OpenSea is 4 ETH and the collection has a total transaction volume of 70.8 ETH. Recently, the organization sold out its second collection, World Of Women Galaxy. Holders of the originals got a free mint and retail customers could mint them for 0.3 ETH. The idea was to lower the entry price to get new people into the community. Currently, the secondary market values the WoWGalaxy collection at a 0.47 ETH floor price at OpenSea. So, the entry price is still low.

Related Reading | Blue Chip NFTs 101 – How Did Moonbirds Conquer The World In A Bearish Market?

More recently, in March this year, World Of Women announced a partnership with the Sandbox metaverse. Both organizations launched the WoW Foundation with the objective of promoting diversity both in the NFT world and the metaverse.

WoW & WoWG holders, if you’re interested in hosting meet-ups in your city but don’t know where to start – tag me on our discord! let’s do more of these

upcoming meet-ups –#WoWToronto : june 4th @nft_leen #WoWNYC : june 7th @mebynetta

rsvp in meet-up threads!!!

— kashvi (@kashviETH) May 29, 2022

The organization has also created derivative pieces, like the Mother Earth Muse collection. For these limited-edition NFTs, they gave eight photographers the task of recreating some of the classic original WoW pieces. With actresses, in the real world. All of the profits from this endeavor went to the artists, the WoW community, and charity organizations.

ETH price chart for 07/01/2022 on Poloniex | Source: ETH/USD on TradingView.com
WoW As Art Collectors

The WoWFund curates the collection, places bids, and acquires. The fund announces all of its moves through the organization’s Twitter feed. The funding comes from 15% of the primary sale royalties. The WoWFund’s focus is 1/1 NFTs, as opposed to generative art collections like World of Women. 

Welcome to the @worldofwomennft Museum! A breathtaking shrine that will highlight the work collected by the WoW Fund, which aims to bring visibility to outstanding artists in the #Web3 space. Created by @nabiya_creative.

Discover more! https://t.co/w55FEwKjSZ pic.twitter.com/B8WCpc7kzo

— The Sandbox (@TheSandboxGame) June 27, 2022

The organization recently unveiled the World of Women Museum in the metaverse. The Sandbox described it as “a breathtaking shrine that will highlight the work collected by the WoW Fund, which aims to bring visibility to outstanding artists in the Web3 space.”

 WoWFund June curation

We placed a bid on “Veiled Beauty” by @wafudraws, an artist from India

“Paying homage to the Kishangarh school of arts, the signature graceful features, including arched eyebrows, lotus-like elongated eyes and pointed chin have been maintained.” pic.twitter.com/nc8Nud8Uj5

— World of Women (@worldofwomennft) June 29, 2022

World Of Women ’s Real-World Impact

The organization is committed to bringing more women into DeFi and Web3. Reportedly, World of Women will create an academy geared toward educating women and guiding them through this wild-wild world. The academy will focus on minority and underrepresented groups. 

Besides that, the organization recently held a meetup in meatspace, more specifically in Los Angeles. The event was such a success, that WoW’s community manager tweeted: “WoW & WoWG holders, if you’re interested in hosting meet-ups in your city but don’t know where to start – tag me on our discord! let’s do more of these.” And announced a meetup in NY and another in Toronto.

Huge thanks to @nft_leen and @NiSangria for organizing the first (and hopefully more) #WOWToronto meet up! Great atmosphere and amazing commity. @worldofwomennft pic.twitter.com/4b2Yf1iUcR

— Sal (@i_amSamm) June 5, 2022

Last but not least, World Of Women recently closed its participation in the NFT NYC conference with a performance by no other than Madonna.

What an honour to host #WoWFinallyEnoughLove, a celebration of Pride, on the closing night of NFT NYC with queen @madonna!

Thank you WoW family for being a part of this journey, we hope you had the experience of a lifetime pic.twitter.com/iHAo63R1hV

— World of Women (@worldofwomennft) June 28, 2022

On the left there, Yam Karkai, WoW’s main artist. Oh, and speaking about celebrities…

What Does Reese Witherspoon Have To Do With It?

The actress’ production company, Hello Sunshine, signed “a storytelling partnership” with World of Women. The idea is to create “entertainment properties” based on their IP and produce a “live event” in conjunction with other women-centric NFT projects. Variety quotes Reese Witherspoon detailing the plans:

Related Reading | Blue Chip NFTs 101 – Let’s Travel To Space With The Doodles Collection

“We’re proud to partner with WoW to expand their universe of characters and to develop innovative scripted and unscripted content. We look forward to engaging with the remarkable WoW community at every step of this partnership and creating opportunities for WoW holders to work collaboratively with Hello Sunshine on transforming the WoW art into powerful stories.”

Will something come out of it? Will the public react favorably to it? Hollywood is a harsh mistress, nothing is guaranteed. If Reese and World of Women succeed, though, it could translate into big things for this collection’s holders. The WoW story is just beginning.

Featured Image: Screenshot from WoW’s website| Charts by TradingView

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Leading Crypto Exchanges See Negative Funding Rates, Have The Bears Taken Over?

Prices have been declining across the crypto market and with it has come to a lot of doubt on the part of investors. This is reflected in the deposit and withdrawal trends recorded across the various crypto exchanges. One of these has been the funding rates which had remained flat for the better part of the first half of 2022. However, there has now been some movement in the funding rates and it is unfortunately not for the better.

Funding Rates Turn Negative

Two leading crypto exchanges have seen negative crypto funding rates for the past week. Binance and ByBit consistently appear on the top of the list for the exchanges with the most trading volume and have become a natural home for perpetual traders. That is why changes across these platforms can be significant to market movements.

Related Reading | Holding Back The Bears: Why Bitcoin Must Break $22,500

Funding rates have been fluctuating at and below neutral for the better part of the month but the latter looks to have finally won out. After bitcoin had dropped below $20,000 last week, expectations had been that more traders would want to get in given the low prices. However, it has gone the other way as average funding rates are now in the negative.

Both Binance and ByBit have recorded average funding rates of -0.0015 for last week. A significant drop from the neutral 0.01% average aggregated funding rates. What this shows is that the bearish sentiment among the perp traders has been growing. As such, they have been leaning towards short traders.

Funding rates turn negative | Source: Arcane Research

It comes hot on the heels of open interest reaching a new high. Most of which have come from both Binance and ByBit. These two metrics expressly show that short traders are more active compared to their long counterparts.

Crypto Sentiment Still Bad

Crypto perp traders are not the only ones that are currently bearish on the market. The same is the case across the space where investors have chosen to hold their cards closer to their chest than they normally would. The Fear & Greed Index puts the crypto market sentiment in the extreme fear territory for another day yet again. Meaning that the market has now closed out two consecutive months with the extreme fear sentiment.

Total market cap falls below $900 billion | Source: Crypto Total Market Cap on TradingView.com

This is apparent in the exchange inflows and outflows, both of which have declined in the last couple of days. However, the ratio of inflows to outflows shows that investors are refusing to take any risk in the market. Bitcoin’s net flows came out to -$29.7 million after outflows had touched $901.6 million for the past day, according to Glassnode.

Daily On-Chain Exchange Flow#Bitcoin $BTC $872.0M in $901.6M out Net flow: -$29.7M#Ethereum $ETH $261.0M in $211.2M out Net flow: +$49.8M#Tether (ERC20) $USDT $221.3M in $207.1M out Net flow: +$14.2Mhttps://t.co/dk2HbGwhVw

— glassnode alerts (@glassnodealerts) July 1, 2022

Related Reading | Bitcoin Records Worst Performance For June, Will It Get Better From Here?

Tether inflows have remained muted as investors are sentiment less money into exchanges to purchase tokens. With positive net flow only coming out to $14.2 million for the past day. Sell-offs have also continued, threatening to drag the market even lower.

Featured image from Analytics Insight, charts from Arcane Research and TradingView.com

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Why Bitcoin Could Return To $28,000, But By The End Of 2022

Goldman Sachs analysts believe Bitcoin and the crypto market could see some relief, but only further short and mid-term turmoil. A recent report from the banking institutions claims the crypto market has been moving in tandem with the U.S. stock market and thus it has been affected by the macro-economic environment.

Related Reading | Why Bitcoin Could Collapse Another 50%, Says Michael “Big Short” Burry

The analysis was conducted by Marion Laboure and Galina Pozdnyakova and it predicts a 30% rally for Bitcoin by the end of 2022. This is still far from the cryptocurrency’s previous all-time high of around $69,000.

The report fails to provide reasons that support the bearish theory. The analysts believe that Bitcoin’s correlation with the stock market will continue to play against it, and while they predict a bounce in equities, they believe BTC’s price will lag in terms of performance.

For the stock market, the Goldman Sachs analysis predicts a resume on its bullish momentum and a potential bounce to its January 2022 levels. In the meantime, Bitcoin could reach $28,000 which is over $10,000 less than its January 2022 levels.

Why will BTC underperform the stock market? It is unclear. As usual for legacy institutions, the analysts dismissed Bitcoin’s fundamentals and compared it to the diamonds market which they claimed to bloomed on the back of “marketing”:

By marketing an idea rather than a product, they built a solid foundation for the $72 billion-a-year diamond industry, which they have dominated for the last eighty years. What’s true for diamonds, is true for many goods and services, including Bitcoins.

The analysts wrote the following on the factors that contribute to the complexities of measuring the value in Bitcoin and other cryptocurrencies, and why this could increase its downside risk:

Stabilizing token prices is hard because there are no common valuation models like those within the public equity system. In addition, the crypto market is highly fragmented. The crypto freefall could continue because of the system’s complexity.

BTC’s price trends to the downside on the 4-hour chart. Source: BTCUSD Tradingview
The Short-Term Horizon For Bitcoin

As NewsBTC reported, experts more familiar with the crypto industry believe Bitcoin and other large cryptocurrencies by market cap will keep on following the stock market. Former CEO of crypto exchange BitMEX Arthur Hayes expects this correlation to contribute to the decline in BTC’s price.

However, at some point during 2022, the crypto market will start to decouple from stocks and the U.S. major equities indexes, the S&P 500 and Nasdaq 100. The bullish momentum for the digital assets could be supported by a decline in both the value of legacy markets and a downside trend in terms of correlation with cryptocurrencies.

Related Reading | Ethereum (ETH) Bends Toward $1,000 As Doubt Fills Crypto Markets

As Hayes explained, that’s when you want to pay attention:

For me to hoist the flag in support of selling fiat and buying crypto in advance of an NDX meltdown (30% to 50% drawdown), correlations across all time frames need to trend demonstratively lower.

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$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

The “delta capitalization” model of Bitcoin may suggest that around $15k could be a possible bottom for the crypto’s price.

Past Delta Cap Trend Shows Bitcoin May Still Face More Decline Before A Bottom

As explained by an analyst in a CryptoQuant post, the BTC market cap is now below the realized cap, but still above the delta cap.

Before taking a look at the data, it’s best to first get a basic grasp of the three major capitalization models for Bitcoin.

The normal market cap is calculated by just taking the total number of coins currently in circulation and multiplying it by the price of BTC right now.

The “realized cap” works a bit differently; instead of multiplying all the coins by the same price, this model weighs each coin by the price it was last moved at.

Related Reading | USDC Exchange Reserves Rise As Investors Escape From Bitcoin

For example, if there are 2 BTC in circulation and the current price is $19k, then the normal market cap is simply $38k. However, if one of these coins was last transacted at, say, $15k, and the other at $19k, then the realized cap would be $34k instead.

Now, the Bitcoin “delta cap” is defined as the difference between the realized cap and the average of the market cap. The average of the normal market cap here is taken over the entire history of the crypto (and it’s naturally a moving average).

The below chart shows the trend in the different market caps for BTC.

The normal market cap still seems to be above the delta cap at the moment | Source: CryptoQuant

As you can see in the above graph, the Bitcoin market cap has recently dipped below the realized cap. However, it has still not gone down near enough to touch the delta cap.

Historically, the value of the crypto has formed bottoms whenever the market cap has been between the other two caps.

Related Reading | Fed Announces Inflation Warnings As Bitcoin Whales Remain In Wait Mode

In 2020, the coin bottomed out after the market cap went slightly under the realized cap, but in 2018 the metric even dipped a bit below the delta cap before the bottom was in.

This past trend may suggest that the point around the delta cap may be the possible lower bound for how deep the coin’s price can sink. And if so, then Bitcoin could potentially sink to or a little under $15k, before the current cap touches the delta cap and the bottom forms.

BTC Price

At the time of writing, Bitcoin’s price floats around $19.3k, down 9% in the past week.

BTC has gone down over the last few days | Source: BTCUSD on TradingView
Featured image from Dmitry Demidko on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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New Bitcoin Record Paints Incredibly Bearish Picture As BTC Struggles At $19,000

Bitcoin has been setting new record trends with the bear market. This follows a bull market that had also deviated largely from its predecessors, so it comes as no surprise that the subsequent near market mirrored this behavior. Various new trends in bitcoin’s movement have cemented a bearish picture for the digital asset, and the latest in the line of records has only done more to cement this sentiment.

Worse Quarterly Close In More Than A Decade

Bitcoin has been in existence for about 13 years and in that time, the barely teenage-aged market has recorded its fair share of bad quarterly closes. However, in the last 11 years, none have been as brutal as the close that was recorded on June 30th. After a month of incredibly volatile prices, the month had closed out the quarter with three consecutive red monthly closes. 

Related Reading | Bitcoin Enters Hibernation Mode As Network Activity Lulls

This comes hot on the heels of the market crash that had rocked the market this year. Bitcoin which leads the market had fallen about 60% from its price at the beginning of the quarter and had brought down the entire market with it. This had seen the crypto total market crash drop below $1 trillion for the first time in a 16-month period.

The digital asset had closed the month at $19,918 after entering the month with an average price of $30,000. This had dashed the hopes of investors and the decline has left in its wake a number of events that continue to threaten the prices in the cryptocurrency market.

 

BTC struggles to hold $19,000 | Source: BTCUSD on TradingView.com
Bitcoin Investors Are Not Impressed

Even though predictions had been incredibly bullish for the year 2022, it has since gone sideways. This has triggered investors to move their funds out of the market for fear of incurring more losses. Also, following previous historical trends, it remains highly possible that the digital asset may crash more before there is any significant recovery.

Related Reading | Decline In Ethereum Futures On CME Suggests Institutional Investors Are Still Bearish

Looking at the indicators, it shows that bitcoin has struggled to hold the important technical levels required for a recovery in the short term. It has been trading below its 200-week moving average for the first time in history, and this has deepened negative sentiment in the market.

Although the digital asset has been moving away from established historical trends, there is still a high chance that it follows some of the previous market movements. One of these is when the bottom is usually in. Sticking to this would mean that the price of bitcoin will likely touch as low as $12,000 before the next bull trend resumes.

Featured image from Coin News, chart from TradingView.com

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Crypto Market Loses $60 Billion As Bitcoin Dips Below $20,000

As of June 28, the bitcoin price fluctuated slightly above the $20K mark. However, toward the end of the day, it eventually dropped to $20K. The market watch also noted the bearish state in the price of most altcoins. These include DOGE, AVAX, SOL, and many others.

Drawing from June 29 data, Bitcoin’s price has finally plunged below the $20K mark. Many renowned cryptos like the Ethereum, Shiba Inu, and Doge tokens also feel the heat of the bearish turn in the market.

Bitcoin Lost The $20,000 Price Mark

According to the news last week, Bitcoin made several attempts to come off the loss in value. During that time, its price shot from $17,500 to $21,000. This was a recovery from its 18-month low price mark. It sustained this $21K price mark until it hit its 10-day high price, a little over $21,800.

Suggested Reading | Bitcoin Slides Under $20K – Another Collapse In The Offing?

The journey to a higher price became abortive for BTC, and it eventually dipped lower than $21K. It attempted to hit this price, but all attempts proved unsuccessful.

BTC’s unsuccessful attempts to appreciate eventually turned into a bearish trend toward $20K. According to the news on June 28, it managed to get slightly above the $20K benchmark.

BTC trends below 1$9,500 Source: BTCUSD on TradingView.com

From today’s market watch, the price of Bitcoin has plunged below $20,000. At the time of writing, it is still fluctuating below this price, bringing its market cap below $400B.

The Effect On Other Digital Tokens

The bearish movement of Bitcoin’s price affects the rest of the digital tokens. This explains the several red bars in the crypto market chart.

During the last weekend, Ethereum attempted to go higher amid the bearish state of the market. At the time, ETH was trading at $1,200. However, this did not last too long as Ethereum’s price currently sells at $1,116, about a 6.5% daily decline in price.

According to the altcoins price data from CoinMarketCap, BNB now trades at $219. This is about a 7.5% 24 hours plunge in its price. There are other altcoins down trend records like SOL, DOGE, SHIB, and XRP, to mention a few.

Suggested Reading | Ethereum (ETH) Hammered Down To $950 As Crypto Selloff Deepens

Also, despite the slight appreciation of the LEO, Tron, and Cardano tokens, they remain in the chart’s red zone. So, judging from the current state of all crypto assets from 2 days back, the total dump in the overall market cap sums up to $60B.

Cryptocurrency Market Overview. Source: Quantify Crypto

Adding this figure to the total drop in the market cap since the beginning of the bearish trend equates to $900 Billion.

Featured image from Pexels, chart from TradingView.com

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