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 Market Specialist

Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.

With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.

References

1

Retrieved 28 Juin 2022 https://blog.coinbase.com/a-message-from-coinbase-ceo-and-cofounder-brian-armstrong-578d76eedb12

2

Retrieved 28 Juin 2022 https://celsiusnetwork.medium.com/a-memo-to-the-celsius-community-59532a06ecc6

3

Retrieved 28 Juin 2022 https://www.prnewswire.com/news-releases/voyager-digital-provides-market-update-301575492.html

4

Retrieved 08 Oct 2022 https://www.youtube.com/watch

Divulgation

Ces documents constituent une communication marketing et ne prennent pas en considération votre situation personnelle, votre expérience d'investissement ou votre situation financière actuelle. Le contenu est fourni en tant que commentaire général du marché et ne doit pas être interprété comme contenant un quelconque type de conseil en investissement, recommandation d'investissement et / ou sollicitation pour toute transaction d'investissement. Cette communication de marché n'implique ni ne vous impose une obligation d'effectuer une transaction d'investissement et / ou d'acheter des produits ou services d'investissement. Ces documents n'ont pas été préparés conformément aux exigences légales visant à promouvoir l'indépendance de la recherche en investissement et ne sont soumis à aucune interdiction de traiter avant la diffusion de la recherche en investissement.

FXCM, et ses affiliés, ne seront en aucun cas responsables envers vous des inexactitudes, erreurs ou omissions, quelle qu'en soit la cause, dans le contenu de ces documents, ou pour tout dommage (direct ou indirect) pouvant résulter de l'utilisation de ce matériel, services et son contenu. Par conséquent, toute personne agissant sur eux le fait entièrement à ses propres risques. Veuillez vous assurer de lire et de comprendre notre clause de non-responsabilité et de responsabilité complète concernant les informations ci-dessus, qui peuvent être consultées ici.

Performances passées: les performances passées ne sont pas un indicateur de résultats ou performances futures.

${getInstrumentData.name} / ${getInstrumentData.ticker} /

Bourse: ${getInstrumentData.exchange}

${getInstrumentData.bid} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}