After a weekend of relentless losses, crypto’s top two coins made marginal recoveries on Sunday, rising above $20,000 and $1,000, respectively.
BTC has recovered by just over 15% in the last 24 hours, rebounding from a shocking low of $17,772 yesterday, to $20,482 at time of writing, according to data from CoinMarketCap. ETH, which plummeted to $898 yesterday, has recovered over 25% in the last day to $1,130 at time of writing.
The price fluctuations mark at least a temporary reprieve from stark downward trajectories over the last week. Last Sunday, BTC fell below $26,000 for the first time in a year, a negative milestone that triggered a massive selloff. Yesterday, BTC fell below $20,000, then $19,000, then $18,000, all in a single day. ETH declined fairly consistently alongside BTC, falling to $898 by yesterday afternoon, a striking drop of over 46% in just a week.
Dogecoin Pumps 8% After Elon Musk Says He's Still Buying
As the current crypto rout continues, Bitcoin and Ethereum are both down 30% over the past week and the entire crypto market cap fell to $830 billion. But Elon Musk declared he will "keep supporting Dogecoin." That was enough to make DOGE spike 8% to $0.058. I will keep supporting Dogecoin — Elon Musk (@elonmusk) June 19, 2022 I am — Elon Musk (@elonmusk) June 19, 2022 Of course, 5.8 cents is a far cry (a 91% drop, to be exact) from the 72 cents Dogecoin touched in May of last year, when Mus...
By tumbling below $20,000 and $1,000 yesterday, BTC and ETH created market conditions that experts have stated could trigger a wave of forced liquidations. In such a scenario, large-scale investors in both cryptocurrencies would be forced to close positions on BTC and ETH derivative products, with prices too low to generate sufficient collateral. Such events likely would push prices of BTC and ETH down even further, triggering more liquidations, in what’s known as a “cascade effect.”
But by recovering, even marginally, to levels above $20,000 and $1,000 today, BTC and ETH have temporarily halted a snowballing selloff that some analysts have said could send BTC as low as $13,800 in the current bear market.
BitMEX and Others Exiting Three Arrows Capital Amid 3AC Insolvency Fears
Three Arrows Capital was a darling among crypto investment firms for years. Now, amid the crypto bear market and after the Terra collapse last month, 3AC appears to be at real risk of insolvency and crypto companies have taken steps to insulate themselves from the distressed firm. Rumors that the Singapore-based firm could be insolvent started swirling last weekend. Since then, co-founder Su Zhu has only said cryptically on Twitter that Three Arrows, which also goes by 3AC, was "in the process...
The severity and the duration of the crypto bear market remains unclear. The latest crypto crash began early last month, when major coins fell along with the stock market. Since then, the crypto market has struggled to recover, with each new ripple effect of the crash causing further damage. The latest repercussions came last week when crypto lenders Celsius and Babel froze withdrawals for all customers, citing potential liquidity issues. Major crypto investment firm Three Arrows Capital may also be at risk of insolvency.
