Crypto Hebdo: From Celsius’ liquidity crisis to the bankruptcy and prospects of Three Arrows Capital …

Cryptocurrencies continue to settle in the bear market as Celsius Network and Three Arrows Capital experience crisis. Bitcoin dived below $ 20,000. Ethereum also fell below $ 1,000. In addition, the EU is in a hurry to regulate the sector. Finally, Circle will launch a euro-backed stable coin.

Celsius Network on the brink of a cash crisis

On the morning of June 13, the crypto-lending platform, Celsius Network, announced the suspension of all withdrawals, exchanges and transfers from its customers due to “extreme market conditions”. But in reality, this decision would be due to a liquidity crisis that the platform is experiencing after Terra’s collapse and the deterioration of the bear market.

A report from Nansen showed that Celsius sold UST for almost $ 420 million. Experts also tracked a $ 320 million transfer of funds from the lending platform to the FTX exchange. Worse has potentially not yet come as the company can liquidate its stETH token reserves. This case is now beginning to worry the U.S. stock market authority; several branches of the SEC have launched investigations into the Celsius Network scandal.

To learn more, read the following article:

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

Three Arrows Capital is facing bankruptcy

The Singaporean crypto investment fund is facing margin calls following a series of liquidations from 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 the sale of its assets. 3AC has already seen 400 million of its assets under management liquidated.

The amount of liquidation of assets at 3AC can 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 learn more, read the following article:

👉: Three Arrows Capital goes bankrupt

Massacre in the crypto market

Cryptocurrencies continue to look red this cryptocurrency winter. After retouching its lowest level as of December 15, 2020, Bitcoin dived below the much-feared $ 20,000 level. Over the weekend, the royal coin reached $ 17,708. The Ethereum price also fell towards $ 896. Other cryptocurrencies are also experiencing massive losses. According to data from CoinmarketCap, there would be more than 70% of the 1000 best cryptocurrencies whose price has fallen (-90%) from their record highs.

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

To learn more, read the following article:

👉: The crypto market is losing $ 60 billion; Bitcoin and Ethereum plunge

The European Union wants to speed up cryptocurrency regulation

Concerned about the decline in cryptocurrencies, EU authorities are seeking to implement laws as soon as possible to regulate the sector. Under the pretext of the TerraUSD collapse and the Celsius Network scandal, EU Commissioner Mairead McGuinness is pushing for the EU to enforce strict rules on cryptocurrencies. In addition, she had appealed to the United States to cooperate with the EU on this matter.

According to the newspaper Fortune, legislation on cryptocurrency is expected to be released in late March. Following the MiCa Act, which sought to ban evidence of work in the EU zone, and the TFR Act, which sought to prohibit any transfer to non-hosted wallets in the event that the sender / recipient is not identified, this news should have a very harder tone.

Commissioner Mairead McGuinness believes the sector could avoid many scandals if there was a global regulatory framework that would oversee the cryptosphere.

To learn more, read the following article:

👉: Crypto Rules: The law may come into force at the end of June

Circle will issue a Euro-supported stablecoin

The US stablecoin issuer, Circle, will launch a new stablecoin on the market. This stable coin, called “Euro Coin or EUROC”, will be released on the market on 30 June. Like Tether, which expanded its reach by launching a stablecoin, backed by the Mexican peso, Circle, for its part, seeks to appeal to the European market.

If LUGH, the European stablecoin developed with the Casino group in partnership, struggles to expand in the EU zone, Circle reckons with the popularity of its USDC to win over users in Europe.

To learn more, read the following article:

👉: Circle will launch a stablecoin in euros

Outlook…

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

The bear market continues to hit the crypto market hard. However, we will only point to a good recovery in the sector after the bearish day on Saturday 18 June. At the time of writing this article, Bitcoin has risen 13% against $ 20,200. Same observation for Ethereum; its price rose 20.99% to reach $ 1,105. Could this movement indicate that the market experienced its bottom over the weekend?

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