Crypto Hebdo: from the liquidity crisis of Celsius to the bankruptcy of Three Arrows Capital and perspectives …

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

Celsius Network on the verge of a cash crisis

On the morning of June 13, the cryptocurrency 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 stem from a liquidity crisis that the platform is experiencing following the collapse of Terra and the deterioration of the bear market.

A report by Nansen showed that Celsius sold nearly UST $ 420 million. The experts also tracked a $ 320 million fund transfer from the lending platform to the FTX exchange. The worst is potentially yet to come, as the company could liquidate its stETH token reserves. This case is now beginning to worry the authority of the American stock market; several branches of the SEC have launched an investigation into the scandal surrounding the Celsius network.

To find out more, read the following article:

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

Three Arrows Capital risks bankruptcy

The Singapore-based crypto investment fund is facing margin calls after a series of liquidations by its creditors. According to the “Wall Street Journal”, the company is in the process of recruiting legal and financial advisors as it evaluates the sale of its assets. 3AC has already seen 400 million assets under management liquidated.

The liquidation amount of assets on 3AC could be much higher. A source close to TerraForm Labs revealed that the investment fund bought 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 find out more, read the following article:

👉: Three Arrows Capital goes bankrupt

Bloodbath in the cryptocurrency market

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

The question then asked by more than one person: to what extent will cryptocurrencies fall? For example, can we see a Bitcoin price cross the $ 10,000 mark or Ethereum drop below $ 100? If the market were to repeat its performance during the crypto winter of 2018, Bitcoin should plummet to $ 13,000 as this technical level would have fallen 80% from its high of $ 69,000, the same level of decline as it was in 2018.

To find out more, read the following article:

👉: The cryptocurrency market loses $ 60 billion; Bitcoin and Ethereum plummet

The European Union wants to speed up the regulation of cryptocurrencies

Concerned about the decline of cryptocurrencies, EU authorities are trying to implement laws to regulate the sector as soon as possible. Under the pretext of the TerraUSD crash and the Celsius network scandal, EU Commissioner Mairead McGuinness is pushing for the EU to enforce strict regulations against cryptocurrencies. Furthermore, she had appealed to the United States to cooperate 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 that tried to ban proof-of-work in the EU area and the TFR law that wanted to prohibit any transfer to non-hosted wallets in the event that the sender / beneficiary was not identified, this news should have a lot harsher tone.

Commissioner Mairead McGuinness believes the industry could avoid many scandals if there was a global regulatory framework overseeing the cryptocurrency sphere.

To find out more, read the following article:

👉: Cryptocurrency Regulations: The law could go into effect at the end of June

Circle will issue a euro-backed stablecoin

American stablecoin broadcaster Circle will launch a new stablecoin on the market. Called “Euro Coin or EUROC”, this euro-backed stablecoin will be released to the market by 30 June. Just 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 users over in Europe.

To find out more, read the following article:

👉: Circle will launch a Euro stablecoin

Perspectives…

Just like last week, we will refrain from presenting Top and Flop for this editorial.

The bear market continues to hit the cryptocurrency market hard. However, we limit ourselves to signaling a good recovery in the sector after the bearish day of Saturday 18 June. At the time of writing, Bitcoin is up 13% towards $ 20,200. Same observation for Ethereum; its price increased by 20.99% to reach $ 1,105. Could this move indicate that the market hit a low over the weekend?

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