Crypto Hebdo: From the Celsius Money Crisis to the Bankruptcy and Prospects of Three Arrows Capital…

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

Celsius Network on the brink of a money crisis

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

A report from Nansen showed that Celsius sold nearly $420 million to UST. Experts have also traced a $320 million money transfer from the lending platform to the FTX exchange. Worse may be yet to come as the company could liquidate its stETH token reserves. This matter is now beginning to worry the US stock exchange authority; Several branches of the SEC have launched investigations into the Celsius Network scandal.

Read the following article for more information:

Better understand the Celsius Network affair and its implications for the cryptosphere

Three Arrows Capital threatens to go bankrupt

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

The amount of liquidation of assets on 3AC could be much higher. A source close to TerraForm Labs revealed that the investment fund has 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 worth only $670.

Read the following article for more information:

Three Arrows Capital goes bankrupt

Bloodbath in the crypto market

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

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

Read the following article for more information:

Crypto Market Loses $60 Billion; Bitcoin and Ethereum plummet

The European Union wants to accelerate crypto regulation

Concerned by the decline of cryptocurrencies, EU authorities are trying to introduce laws to regulate the sector as soon as possible. Under the pretext of the TerraUSD collapse and the Celsius Network scandal, EU Commissioner Mairead McGuinness is urging the EU to enforce strict rules against cryptocurrencies. In addition, she had called on the United States to cooperate with the EU on this file.

According to Fortune newspaper, the cryptocurrency legislation is expected to be released at the end of March. After the MiCa law that wanted to ban proof-of-work in the EU zone and the TFR law that wanted to ban any transfer to non-hosted wallets in case the sender/beneficiary is not identified, this news would make a lot of news have to have. louder tone.

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

Read the following article for more information:

Crypto Regulations: The Law Could Come Into Force At The End Of June

Circle will issue a Euro-backed stablecoin

US stablecoin issuer Circle will launch a new stablecoin. This euro-backed stablecoin, called “Euro Coin or EUROC”, will hit the market by June 30. Like Tether, which expanded its reach by launching a stablecoin backed by the Mexican peso, Circle, in turn, aims to appeal to the European market.

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

Read the following article for more information:

Circle launches a stablecoin in Euro

outlook…

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

The bear market continues to hit the crypto market hard. However, we don’t want to point to a good recovery in the sector until after the bearish day of Saturday, June 18. At the time of writing this article, Bitcoin is up 13% towards $20,200. Same observation for Ethereum; the price rose 20.99% to $1,105. Could this move indicate that the market bottomed out over the weekend?

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