After increasing in value slightly on Thursday, bitcoin has sunk further by about 7 per cent in the last 24 hours, and has sunk below $21,000, with the overall crypto market dipping below the $900 mn mark.
While many analysts speculated that Wednesday’s low may be the bottom of the cycle, others have warned that more volatility may be on the way.
BTC remains over 70 per cent down from its all-time high in November 2021.
The overall crypto market is valued at about $892 mn as leading cryptocurrencies, including Ethereum (ETH), Cardano (ADA) and Solana (SOL) have sunk in price by over 20 to 30 per cent over the last week.
Major platforms including Celsius and Binance have experienced operational issues this week, which they blamed on an influx of investors liquidating their assets.
Crypto exchange Coinbase has also announced that it is culling over 1,000 employees after previously rescinding job offers, however Binance has announced it is hiring 2,000 more staff.
Key points
Musk sees logic in integrating crypto payments into Twitter
05:48 , Vishwam Sankaran
Tesla chief Elon Musk says it ‘makes sense’ to integrate digital payments into Twitter.
The multibillionaire, who has an agreement to purchase Twitter for $44 bn, said that “it would make sense to integrate payments into Twitter so it’s easy to send money back and forth.”
“Money is fundamentally digital at this point and has been for a while,” he reportedly said during Twitter’s all-hands meeting.
Crypto volatility throwing more stablecoins off peg
05:00 , Vishwam Sankaran
Volatility in the crypto market is affecting more stablecoins with their market capitalisation sinking to $156.8 bn on Thursday, compared to about $181 billion at the start of May.
Tether, the world’s largest stablecoin, saw another round of redemptions with investors pulling out about $1.6 bn in 48 hours from USDT.
The stablecoin also dropped to $0.993 on Wednesday but quickly regained its peg with the US dollar.
“Stablecoin market cap goes hand in hand with sentiment and liquidity in crypto markets, and it’s slightly worrying that USDT appears to see another round of liquidations,” crypto digital asset manager IDEG wrote in a note, according to Reuters.
Bitcoin sinks towards $20K mark
03:37 , Vishwam Sankaran
Bitcoin has dropped by over 7 per cent in the last 24 hours, and has sunk below the $21,000 mark.
The leading cryptocurrency is down by over 30 per cent in the last week, and is currently priced at close to $20,700.
Ethereum has also dropped in value by over 10 per cent in the last day, and is below the $1,100 mark.
Among altcoins, cardano and dogecoin are down by about 7 per cent in the last day, while solana and polkadot have sunk by over 10 per cent during this period.
The overall crypto market has dropped in value by nearly 7 per cent in the last 24 hours, and is valued at just under $900 bn.
New crypto launched amid market chaos
Thursday 16 June 2022 19:00 , Anthony Cuthbertson
In the middle of all the market chaos, payments firm Circle has launched a new stablecoin that will be pegged to the euro.
The aptly-named Euro Coin (EUROC) follows Circle’s other stablecoin success USD Coin (USDC), which is currently the world’s fourth most valuable cryptocurrency by market cap.
“Circle has set industry-leading standards for moving financial value across the internet with USDC,” said Jeremy Allaire, co-founder and CEO of Circle.
“There is clear market demand for a digital currency denominated in euros, the world’s second most traded currency after the U.S. dollar. With USDC and Euro Coin, Circle is helping to unlock a new era of fast, inexpensive, secure and interoperable value exchange worldwide.”
Euro Coin will be available from 30 June.
Bitcoin whales accumulate during price crash
Thursday 16 June 2022 17:53 , Anthony Cuthbertson
CoinMarketCap has released its latest analysis into the bitcoin price crash, which saw it plunge to yearly lows on Wednesday.
The leading price index, which is owned by the crypto exchange Binance, looks at metrics like trading volume, momentum, and the cryptocurrency’s correlation to traditional stock markets like Nasdaq 100.
One interesting trend is that large-scale holders, known as whales, appear to have been accumulating bitcoin throughout this downturn.
“There is a positive netflow of 71.95k BTC which signals accumulation from large players,” the analysis notes.
“These are the group of holders that usually represent the true believers in the technology and the ones that will be willing to hold the ups and downs of the token. Since they are in it for the vision of the project, they will take greater risks.”
Bitcoin is ‘antidote to chaos’
Thursday 16 June 2022 16:19 , Anthony Cuthbertson
MicroStrategy CEO Michael Saylor, whose bold bitcoin strategy has placed the software firm in the firing line of crypto critics, has once again asseted his conviction in the cryptocurrency.
“Bitcoin is the antidote to chaos,” he tweets.
You can read more about MicroStrategy’s bitcoin gamble here.
Bitcoin price ‘close’ to bottom
Thursday 16 June 2022 15:10 , Anthony Cuthbertson
More analysis of market indicators suggest – but don’t necessarily mean – that bitcoin may be close to the bottom of this price cycle.
Kevin Svenson has revisited a relative strength index (RSI) analysis he made in April, noting that the latest price crash means the target set has been reached.
“Does this mean the bottom is in?” he wrote on Twitter. “Not necessarily. But it means we are close.”
Bitcoin price crash causes Binance boss to do ‘deep self-inflection’
Thursday 16 June 2022 13:54 , Anthony Cuthbertson
A day after announcing 2,000 new job openings at Binance, the boss of the cryptocurrency exchange has offered more thoughts on the latest bitcoin price crash.
Changpeng Zhao (CZ) has been doing the rounds of US news networks, appearing on CNBC, Bloomberg and others to explain the impact the downturn has had.
“While lots of projects and exchanges are going to struggle through the bear market, many will come back stronger than before. Those that fail honestly, will start new projects and bring critical learnings from this experience. This is how an industry grow,” he said.
“Even though we have the benefit of experience from previous cycles, we are not immune to this cycle either. We will be doing some deep self-inflection to better prepare for the next bull market.”
Bitcoin sees largest exchange inflows since 2018 bottom
Thursday 16 June 2022 11:36 , Anthony Cuthbertson
Popular crypto market analyst Lark Davis has noted that cryptocurrency exchanges are currently experiencing their largest inflows since 2018, when the market was bottoming out following the 2017 price peak.
“Every time the market tanks investors rush to panic sell the lows,” Davis writes.
Bitcoin price ‘yet to hit freezing point’ in crypto winter
Thursday 16 June 2022 11:22 , Anthony Cuthbertson
Not everyone is convinced that $20,000 will be bitcoin’s bottom in this cycle, with some analysts pointing to the +80 per cent price drops following previous all-time highs.
These corrections typically last for years, not months, meaning we could be in the midst of a so-called ‘crypto winter’.
We’ve heard from Dr Lil Read, senior thematic analyst at GlobalData, who gives a decidedly bearish outlook on bitcoin and the rest of the crypto market.
We’re plummeting into a cold crypto winter, and we haven’t hit the freezing point yet. Rumours and fears are swirling that bitcoin will drop below $20,000 amid wider volatility in financial markets and sell-offs in other asset classes. This is a generous, rose-tinted outlook on a 6-12-month view. Bitcoin, Ethereum and other coins have plunged in value, and the bottom is yet to come.
Dr Lil Read, GlobalData
Bitcoin bounces off four-year moving average
Thursday 16 June 2022 10:34 , Anthony Cuthbertson
Bitcoin came within a couple of hundred dollars of dropping to $20,000 yesterday, which holds alot of significance for adherants to a particular view on the cryptocurrency’s cyclical nature.
It is a fact that anyone who has bought and held bitcoin for at least four years has never lost money. For some this is proof of its intrinsic worth as a store of value, however yesterday BTC came within 1 per cent of destroying this notion by dropping below the 2017 price peak.
It’s for this reason that certain crypto market analysts are saying yesterday’s price level marked the bottom, pointing to BTC’s four-year simple moving average.
Others have dismissed this analysis and claim the latest recovery is just a “dead cat bounce” on the way to more losses.
Tether sees another wave of redemptions
Thursday 16 June 2022 07:21 , Vishwam Sankaran
Investors have pulled out nearly $1.6 billion in 48 hours from Tether’s USDT.
The stablecoin’s circulating supply has dropped to about $70 bn, the lowest since October 2021, according to data from CoinMarketCap.
Bitcoin miners scaling down production
Thursday 16 June 2022 06:28 , Vishwam Sankaran
Bitcoin miners are reportedly scaling down production due to the crypto market crash and surging energy costs.
The bitcoin hash rate, which is a measure of the amount of power spent for minting new coins, has slipped by 4 per cent since the beginning of this week, according to data from Blockchain.com.
“Currently, it’s not fun to be in the mining business,” Alexander Neumueller, digital assets project lead at the Cambridge Centre for Alternative Finance, said according to the Financial Times.
Bitcoin sinks but regains value
Thursday 16 June 2022 04:42 , Vishwam Sankaran
After sinking very close to the $20,000 mark on Wednesday, Bitcoin has marginally risen to over $22,000, growing in value by about 3 per cent in the last day.
The leading cryptocurrency is still down by over 25 per cent compared to its price last week.
Ethereum has also grown by over 2 per cent in the last day, but is down by over 30 per cent compared to its value a week ago.
Cardano, polkadot, and dogecoin have grown by over 10 per cent in the last 24 hours.
The overall crypto market has grown by 3 per cent in the last day, but is still below the $1 tn mark.
‘Bitcoin is the best performing asset’: MicroStrategy CEO responds to price crash
Wednesday 15 June 2022 17:30 , Anthony Cuthbertson
We reported earlier that more than $1 billion has been wiped from MicroStrategy’s bitcoin holdings following the latest market downturn.
CEO Michael Saylor has today addressed those losses on live TV, appearing on CNBC to say he has a long-term view of the bitcoin market, noting that bitcoin has never moved below its four-year simple moving average in its history. That means anyone who has ever bought bitcoin and held it for more than four years has not lost money.
“I think it’s been a net positive,” he told CNBC.
“Over any time frame – two years, four years, eight years – bitcoin is the best performing asset, I can’t come up with a better idea.”
Wednesday 15 June 2022 17:00 , Adam Smith
Coinbase’s reduction in staff shows shows the dangers of relying on HODL, instead of a calculated approach to the crypto industry, according to Dmitry Gooshchin, co-founder of AI trading platform EndoTech.
“Investors and pioneers have failed to factor market volatility into their business models, which is an oversight given that volatility is an inherent component of this young market. It’s clear that both investors and crypto pioneers took a HODL approach instead of one that represents a more calculated approach to this nascent industry”, Mr Gooshchin said.
Crypto exchange Binance is hiring
Wednesday 15 June 2022 16:39 , Anthony Cuthbertson
Just a day after Coinbase announced that it would be firing 18 per cent of its workforce – totalling roughly 1,100 people – rival crypto exchange Binance has announced that it is hiring.
CEO Changpeng Zhao, known as CZ, said the company has 2,000 open positions, which he attributed to Binance not splashing the cash on expensive crypto ads and sponsorship deals during the latest bull run.
Crypto crash: MicroStrategy’s bitcoin losses top $1 billion
Wednesday 15 June 2022 16:02 , Anthony Cuthbertson
Today’s losses mean MicroStrategy, the world’s biggest corporate investor in bitcoin, is now down more than $1 billion from its initial investment.
CEO Michael Saylor remains adamant that the firm won’t sell its holdings, and that previous concerns on a margin call on one of its loans were over stated.
After spending nearly $4 billion on its stockpile, MicroStrategy’s BTC is now worth less than $2.7 billion. Advocates would say that the USD value may drop but the number of bitcoins remains the same.
You can read more about it here.
The world’s biggest bitcoin investor has now lost more than $1 billion
Wednesday 15 June 2022 15:00 , Adam Smith
stETH has dropped to $4 billion from about $10 billion last month as holders sell while ether’s price crashes.
“In the short term, stETH will face tremendous selling pressure,” Huobi Research Institute’s report states. “Turbulence is expected in the near future.”
Celsius holds 409,260 stETH tokens
Wednesday 15 June 2022 14:00 , Adam Smith
Celsius, which froze withdrawals last weekend is also holding 409,260 stETH tokens.
Celsius took a loss of almost $71 million earlier from staking stETH on Stakehound because Stakehound misplaced the keys, according to Johnny Louey and Andy Hoo, analysts at Huobi Research Institute.
“What Celsius can do is sell its stETH in order to buy ETH on the market to satisfy client requests,” Noelle Acheson, head of market insights at crypto market maker Genesis, told CoinDesk
Bill Gates says NFTs are based on ‘greater fool theory’
Wednesday 15 June 2022 13:34 , Anthony Cuthbertson
Billionaire Bill Gates has once again spoken out about cryptocurrencies and non-fungible tokens, claiming they are “100 per cent based on greater fool theory – that somebody is going to pay more for it than I do”.
Speaking at TechCrunch talk, he joked: “Obviously digital images of monkeys are going to improve the world immensely, and that’s so incredible.”
As the biggest private owner of famland in the US, he added: “I’m used to asset classes like a farm where they have output or a company where they make products.”
Here’s the full story:
Bill Gates reveals how people sell NFTs for so much
Bitcoin price teeters above 2017 peak
Wednesday 15 June 2022 12:05 , Anthony Cuthbertson
A further 10 per cent price slide on Wednesday morning has left bitcoin hovering just above $20,000.
Rewind nearly five years and this was the peak seen in 2017 after a record-breaking rally. If it fails to hold support at this key level, analysts fear that even more losses could be on the way. BTC is currently around 70 per cent down from its 2021 record, with major corrections in the past wiping upwards of 80 per cent from the cryptocurrency’s value.
You can read more about it here.
Bitcoin price crashes further amid warnings it could still go ‘much further south’
Crypto needs safeguards against a liquidity crisis
Wednesday 15 June 2022 12:01 , Adam Smith
Crypto lenders and exchanges need to leverage adult tools to safeguard against a liquidity crisis, according to Dr. Anna Becker, co-founder of AI trading platform EndoTech.
“In the same way trading platforms are growing up by incorporating volatility into their business strategy, for instance with the use of algorithmic trading as opposed to the old model of emotional buy and hold trading, crypto lenders and exchanges need to leverage adult tools to safeguard against a liquidity crisis like the one we’re seeing,” said Dr. Becker.
“It is unacceptable for lending institutions and currency exchanges to prevent customers from accessing their funds. I urge regulatory bodies to clamp down on cowboy crypto firms who are robbing innocent people, and help steer the market into maturity.”
Wednesday 15 June 2022 11:30 , Adam Smith
Hedge fund tweet means more speculation
Wednesday 15 June 2022 11:00 , Adam Smith
A tweet from crypto hedge fund Three Arrows Capital has caused more fear in the market. The hedge fund has been liquidating its crypto holdings admit the price drop.
“We are in the process of communicating with relevant parties and fully committed to working this out,” former Credit Suisse Group AG trader Zhu Su tweeted from his verified account, without providing further details.
Three Arrows started withdrawing a cryptocurrency called staked Ether, or stETH from decentralized platforms last month, Bloomberg reports.
Crypto prices this morning
Wednesday 15 June 2022 08:32 , Adam Smith
Today, BItcoin is down 6.13 per cent to $21.072. Ethereum is down 8.52 per cent to $1,114.08.
MicroStrategy says it can withstand further volatility
Wednesday 15 June 2022 07:30 , Vishwam Sankaran
US software developer MicroStrategy says it has not received a margin call against its bitcoin-backed loan, and could withstand more volatility in the crypto market.
“We can always contribute additional bitcoins to maintain the required loan-to-value ratio,” MicroStrategy said in a statement, according to Reuters.
“Even at current prices, we continue to maintain more than sufficient additional unpledged bitcoins to meet our requirements under the loan agreement,” the company reportedly said.
Bitcoin could tank further if it slips below $20K, expert says
Wednesday 15 June 2022 07:00 , Vishwam Sankaran
Arthur Hayes, former BitMEX chief, has said if bitcoin’s value dips below the $20,000 mark, a “massive sell pressure” may ensue, which could further drive down prices of the leading cryptocurrency.
Ethereum’s price could also be impacted in a similar way if it slips below $1000, he said.
“If these levels break, $20k $BTC & $1k $ETH, we can expect massive sell pressure in the spot markets as dealers hedge themselves,” Mr Hayes said.
“We can also expect that there will be some otc dealers and that will be unable to hedge properly and might go belly up,” he added.
Bill Gates slams crypto as based on ‘greater fool’ theory
Wednesday 15 June 2022 06:20 , Vishwam Sankaran
Bill Gates has dismissed crypto projects like NFTs as shams based on the “greater fool” theory.
Speaking at a climate conference on Tuesday, hosted by TechCrunch, the billionaire reportedly said he is neither long nor short on the entire sector.
“Obviously, expensive digital images of monkeys are going to improve the world immensely,” Mr Gates said sarcastically, according to Bloomberg.
Wall Street watchdog asks laid-off crypto employees to work with them
Wednesday 15 June 2022 05:40 , Vishwam Sankaran
The chief of US Financial Industry Regulatory Authority (FINRA) Robert Cook has said the company is planning to increase its resources to monitor cryptocurrencies.
Amid the ongoing layoffs and hiring freezes by crypto firms including Coinbase, Blockfi, and Crypto.com, FINRA has said it wants to “bulk up” its capabilities to understand cryptocurrencies better.
“We’re going to need to be engaged and prepared to have the resources to do that, so anybody who is getting laid off from a crypto platform and wants to work for FINRA, give me a call,” Mr Cook said, according to Reuters.
stETH is crashing too
Wednesday 15 June 2022 09:05 , Adam Smith
stETH has dropped to $4 billion from about $10 billion last month, due to holders selling as ether’s price crashes.
“In the short term, stETH will face tremendous selling pressure,” Huobi Research Institute’s report states. “Turbulence is expected in the near future.”
Crypto has ‘not moved in step with traditional assets’
Wednesday 15 June 2022 05:00 , Adam Smith
“[Cryptocurrencies] have in the past not moved in step with traditional assets such as equities, however in recent times the link between the two has grown ever closer,” Simon Peters, an analyst at the online trading platform eToro, wrote in a note on Monday.
“Now the clearest signal yet that cryptoassets such as bitcoin and ether are moving in lockstep with equities has flashed, as inflation worries have sent stocks and crypto tumbling. The reasons for this are varied, but much of it comes down to institutional holders, which calibrate their risk assets in similar ways, be they tech stocks or bitcoin.”
Bank of England chief warns people about crypto investment
Wednesday 15 June 2022 04:40 , Vishwam Sankaran
Bank of England governor Andrew Bailey has warned people to prepare for huge losses if they invest in digital assets.
“If you want to invest in these assets, OK. But be prepared to lose all your money,” Mr Bailey said on Monday amid the crypto market crash as Celsius Network froze withdrawals and transfers between accounts citing “extreme market conditions”.
Bitcoin, altcoins marginally rise in value
Wednesday 15 June 2022 03:34 , Vishwam Sankaran
Bitcoin has grown by about 3 per cent compared to its value a day earlier.
However, the leading cryptocurrency is still hovering around the $22,000 mark over the last 24 hours.
Other top cryptocurrencies, including ethereum, cardano, and dogecoin, have surged by about 8 to 10 per cent in the last day, but are still down by 25 to 30 per cent compared to their values a week earlier.
The overall crypto market is up by about 4 per cent in the last 24 hours but its value is still below the $1 tn mark.
Coinbase says a ‘crypto winter’ could come
Wednesday 15 June 2022 02:00 , Adam Smith
Crypto exchange Coinbase will sack 18 per cent of staff amid fears of an incoming “crypto winter”.
Brian Armstrong, Coinbase’s chief executive and co-founder, said that he admitted the company had grown too quickly and was to blame for at least some of its problems.
But it now faced a situation in which it had to sack a large proportion of its staff in order to keep the company secure through any future economic downturn, he said.
Coinbase employees were to receive emails from HR to tell them if their job was affected, he said. Those would be sent to their personal email addresses, since the people being sacked would immediately lose access to the company’s systems.
El Salvador says financial risk is ‘minimal’
Tuesday 14 June 2022 23:00 , Adam Smith
As the crypto market continues to crash, El Salvador’s bitcoin stockpile is now worth less than 50 per cent of the price it acquired it for following the latest crypto market crash.
The losses, which total more than $50 million, pose an “extremely minimal” fiscal risk for the Central American country, according to Finance Minister Alejandro Zelaya.
“When they tell me that the fiscal risk for El Salvador because of bitcoin is really high, the only thing I can do is smile,” he said according to Reuters.
“The fiscal risk is extremely minimal. 40 million dollars does not even represent 0.5 per cent of our national general budget.”
The IMF “stressed that there are large risks associated with the use of bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities.”
Despite these warnings, the Central African Republic (CAR) voted in April to become the second country in the world to make bitcoin legal money.
Binance chief executive says it will carry on
Tuesday 14 June 2022 20:00 , Adam Smith
Binance’s chief executive has said that it will be hiring more – even as other companies are reducing staff.
“We have a very healthy war chest; we in fact are expanding hiring right now,” Zhao said, as Fortune reports. “If we are in a crypto winter, we will leverage that, we will use that to the max,” he said, adding that the company is “kicking into high gear in terms of M&A activity.”
This is Binance did not spend money on large promotions like Super Bowl ads or naming rights to sports arenas – which Crypto.com did.
Other crypto firms are reducing heads
Tuesday 14 June 2022 17:00 , Adam Smith
As well as Coinbase, BlockFi CEO Zac Prince has that the company will be “reducing [its] headcount by roughly 20 per cent”.
Crypto.com also announced that was laying off 260 employees.
Tuesday 14 June 2022 16:20 , Adam Smith
“If [Celcius] goes into full liquidation mode, then it will have to close out these positions,” said Omid Malekan, an adjunct professor at Columbia Business School, but a sell off of crypto assets is likely to only affect the crypto market – although inflation and a general crash among tech stocks has also happened recently.
Crypto investors are worried about another downturn
Tuesday 14 June 2022 16:00 , Adam Smith
“In the medium term, everyone is really bracing for more downside,” said Mikkel Morch, executive director of crypto hedge fund ARK36, told CNBC.
“Bear markets have a way of exposing previously hidden weaknesses and overleveraged projects so it is possible that we see events like last month’s unwinding of the Terra ecosystem repeat.”
Monsur Hussain, senior director of financial institutions at Fitch Ratings, also told the publication that the liquidation of Celsius’ assets would “further rock the valuation of cryptoassets, leading to a wider round of contagion within the crypto sphere.”
Tuesday 14 June 2022 15:40 , Adam Smith
El Salvador’s bitcoin plunges
Tuesday 14 June 2022 15:30 , Adam Smith
Coinbase users could lose their crypto
Tuesday 14 June 2022 15:14 , Adam Smith
Last month, Coinbase warned users that their cryptocurrency could be at risk if the exchange ever went bankrupt.
“Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors”, the warning states.