News updates June 16, 2022
1. BTC Struggles above $20K as Price Rebound Is Imminent
Bitcoin (BTC) has resumed consolidation above the current support as price rebound is imminent. In a nutshell, BTC/USD is fluctuating between $20,050 and $23,000 price levels. A further decline is unlikely as the market reaches the oversold region. The largest cryptocurrency is trading at $21,844.74 as of press time.
2. Bitcoin Amidst Relentless Sell Off; Is It Targeting $13,000 Now?
Bitcoin has been on a continued downfall after losing close to 33% over the last seven days. In the last 24 hours, BTC lost close to 6% and was moving towards its next support level. There has been immense choppiness in the market, with BTC steadying around the support level of $23,000 and then falling right through that level again.
Bitcoin again bounced off the $20,000 price level as it was trading slightly above that level at the time of writing. Fall from the current price level can push the coin towards the $17,000 support mark.
Traditional financial markets also have suffered the brunt after the US Federal Reserve decided to hike up interest rates by at least 50-basis points.
BTC was priced at $21,000 on the one day chart. BTC last traded at this price level in the month of December of 2020. It has been a consistent fall for BTC after the coin lost support at $28,000. Immediate resistance level for the coin stood at $22,000.
The support zone was between $19,000 and $16,000 respectively. Consistent sell off can push BTC to $13,000 going by the massive bearish momentum the coin has gathered. Volume of Bitcoin traded increased and was in red signifying bearish assertion in the market.
3. Three Arrows Accused Of Misappropriating Customer Funds
Embattled crypto hedge fund Three Arrows Capital faces allegations of using customer funds to meet margin calls on its positions.
Danny Yuan, the head of crypto trading firm 8Blocks Capital, alleged that Three Arrows had used about $1 million of 8Blocks’ funds to answer its margin call. 8Blocks had entered into an agreement with the hedge fund in 2020 to use the latter’s trading accounts.
The allegations come as Three Arrow faces liquidations on multiple fronts by its debtors, amid a sharp decline in the crypto market.
The firm has reportedly already seen some of its positions closed, which has also to some extent caused a decline in the crypto market, especially Ethereum prices.
4. Here’s Why Bankruptcy May Be The Only Option For Celsius Network
Celsius Network appears to be on the brink of insolvency, and bankruptcy may be the only option for one of the largest centralized crypto lending platforms. Celsius is currently exploring every option to prevent insolvency, including hiring restructuring lawyers for its financial problems, appointing Citigroup to advise on potential financial options, and freezing withdrawals and transfers on the platform.
However, crypto research firms and many crypto experts believe poor risk management, bearish market conditions, and stETH depeg will likely put Celsius in a more difficult situation. In fact, the use of its significant stETH holdings as collateral to generate liquidity seems to be the only option.
5. Total Flows on Exchanges Show 370% Rise as Market's Volatility Is Topping
With the spike in volatility on the cryptocurrency market, exchanges have faced a massive spike in inflows as traders were actively shorting, withdrawing and hedging on the market, according to IntoTheBlock.
As the Total Flows Indicator, which measures inflows and outflows from exchanges, suggests, this week the sum of Total Flow on Bitcoin reached its highest values since November 2017. There are many causes behind such a strong increase in exchange flows, apart from the massive spike in volatility.
6. Kazakhstan to let crypto exchanges open bank accounts
In addition to its swift advances toward regulating crypto mining, Kazakhstan will launch a pilot project for crypto exchanges in the special economic zone of Astana International Finance Centre.
The Ministry of Digital Development, Innovations and Aerospace Industry of Kazakhstan Republic announced on Thursday a pilot project of cooperation between the crypto exchanges and some of the local banks.
7. As Inflation Skyrockets, MicroStrategy CEO Saylor Asserts Bitcoin Hasn’t Reached Its Top In This Cycle
Chairman & CEO of MicroStrategy (MSTR), a publicly-traded business intelligence firm, Michael Saylor recently took to Twitter to assert that inflation is yet to peak even as the consumer price index shoots up. He juxtaposed this situation with BTC saying the coin hasn’t reached its top.
8. Gold Market on the Rise – AABBG Token and the Gold Crypto Opportunity
The current economic scenario has awoken the gold bulls on the financial markets. The fears of an economic recession and the currently high inflation are pushing the gold prices up.
In this particular framework, investors seem to have a new weapon under their belt: gold-backed cryptocurrencies. These assets aim to take the best features from two distinct worlds. These projects want to merge the growth potential of cryptocurrencies and the safe-haven feature of the gold market.
9. BitBoy founder threatens class action lawsuit against Celsius
Just two weeks after appearing in an ask me anything (AMA) with Celsius founder Alex Mashinsky, crypto Youtuber Ben Armstrong has announced he intends to file a class-action lawsuit against the lending platform and its chief executive.
Armstrong made legal threats via Twitter on Wednesday and has since provided more detail in multiple threads. His issue is centered on being unable to pay down loans with existing funds on the platform, and instead, having to deposit new funds to pay the loans off.