Thursday, August 11 2022
This week in coins. Illustration by Mitchell Preffer for Decrypt

Earnings of 30% of Bitcoin and Ethereum In the past week they were short-lived as both market leaders depreciated over 10% over the past week, with Bitcoin dipping below the key $20,000 support level.

The world’s favorite cryptocurrency, at the time of writing, was trading for just $19,203, with main rival Ethereum suffering steeper losses, dropping around 15% over the week to $1,045.

Several leading cryptocurrencies posted notable losses this week, including Polygon and Near Protocol, each down 22% to $0.47 and $3.30, respectively. Avalanche fell 23% to $16.32, Solana fell 23% to $32.63, and Polkadot fell 18% to $6.80.

Virtually all of the top 30 cryptocurrencies posted losses in double-digit percentage figures, except for UNUS SED LEO, TRON, and Dogecoin. LEO was down 1.5% at $5.77, while Dogecoin was also down 1.5% at $0.06719. Meanwhile, TRON it only depreciated 0.69% this week to $0.06485.

3AC files for bankruptcy

There was little room for optimism in the week’s news, most of which simply confirmed fears that the sector is slipping into recession.

More details emerged Monday about the insolvency Singapore-based crypto hedge fund Three Arrows Capital (3AC), with reports that crypto broker Voyager Digital had served 3AC with a default notice for not paying back some of his $673 million debt from loans of 15,250 Bitcoin and $350 million in USDC.

On Wednesday, sky news reported that 3AC was ordered to liquidate by a court order in the British Virgin Islands (BVI), and that the management consulting company Teneo would assist in the insolvency proceedings.

Bloomberg reported on Friday that 3AC had filed for Chapter 15 bankruptcya move calculated to protect 3AC’s US assets while liquidation occurs in BVI.

Bitcoin’s bear run

On Monday, a report by digital asset manager Coinshares revealed Bitcoin-specific fund outflows last week amounted to $453 millionroughly equal to all inflows in the last six months, and the highest dollar amount on record.

According to CoinShares, last week’s outflows were the third largest on record in terms of assets under management (AUM), accounting for 1.2% of the total AUM of all funds tracked by CoinShares. (The worst exits by percentage, 1.6%, were recorded during the 2018 bear market.)

Also on Monday, shares of Coinbase fell 9% to $56.88 after Goldman Sachs downgraded the company. from “neutral” to “sell” and lowered his price target from $70 to $45. coinbase recently said he would shoot 18% of its staff in addition to rescind some job offers of incoming employees, but analysts said additional measures would be required to stem future losses.

That same day, SEC Chairman Gary Gensler reaffirmed in a interview with CNBC your agency’s opinion that Bitcoin is a commoditynot a security, but refrained from extending the label to any other cryptocurrency.

Gensler said Bitcoin is an example of a crypto asset that needs to be regulated by the Commodity Futures Trading Commission (CFTC), such as has said before. The previous SEC administration also considered Ethereum a commodity.

On Wednesday, the SEC rejected Grayscale’s application for a Bitcoin Spot ETF, saying the digital asset management giant had not done enough to protect investors from “fraudulent and manipulative acts and practices.” The next day, Grayscale CEO Michael Sonnenshein announced on Twitter that his company is file a lawsuit against the Securities and Exchange Commission.

All told, the past three months have been so bearish for Bitcoin that the market leader posted its second-worst quarterly performance ever. ever. That’s fine for some, though. Bitcoin whales, like the CEO of MicroStrategy Michael Saylor and the authoritarian president of El Salvador, Nayib Bukeleare buying the dip.

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