Bitcoin Cautious as Crypto Hedge Fund Defaults on Loan
Crypto Collapse Hurts the Industry
The crypto market is still reeling from the recent rout, with FXCM's CryptoMajor Basket heading towards its third straight negative month, losing around 35% in June, at the time of writing.
This plunge in digital assets has rattled the industry, with Coinbase laying-off 18% of its workforce and warning of a potential new crypto winter, earlier in the month [1]. We also saw some firms, such as crypto lender Celsius, freezing withdrawals [2].
The price plunge continues to reverberate, as crypto hedge fund Three Arrows Capital (3AC) defaulted on a loan from Voyager Digital. The company said on Monday, that 3AC had failed to "make the required payments on its previously disclosed loan of 15,250 BTC and $350 million USDC". [3]
Continued Crypto Scrutiny
Digital assets have been under increasing regulatory scrutiny, while many high profile-speakers had harsh words in the aftermath of the recent sell-off, with the President of the European Central Bank being amongst them.
Securities and Exchange Commission (SEC) Chair, Gary Gensler, told CNBC on Monday that Cryptocurrency is a "highly speculative asset class" and called for closer cooperation between the SEC, the CFTC and banking regulators. He also warned that many tokens are "potentially non-compliant" and referred only to Bitcoin as "commodity". [4]
BTC/USD Analysis
The BTC/USD sell-off continued during the current month, leading to a breach of the 20,000 mark for the first time since late-2020. The popular cryptocurrency is exposed to 17,566, although bears are likely to need fresh impetus for challenging it and looking towards 13,207.
On the other, BTC/USD has steadied since mid-June and so far defends the psychological 20K level and an effort towards 38.2% Fibonacci of the June High/Low drop (24,320) would not surprise us. However, we struggle to see at this point, what could lead to sustained recovery beyond this area that would bring the EMA200 (at around 26,800) in the spotlight.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 28 Jun 2022 https://blog.coinbase.com/a-message-from-coinbase-ceo-and-cofounder-brian-armstrong-578d76eedb12 | |
| Retrieved 28 Jun 2022 https://celsiusnetwork.medium.com/a-memo-to-the-celsius-community-59532a06ecc6 | |
| Retrieved 28 Jun 2022 https://www.prnewswire.com/news-releases/voyager-digital-provides-market-update-301575492.html | |
| Retrieved 08 May 2026 https://www.youtube.com/watch |
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