The crypto-market is finally at the end of an intense sell-off period, or months after the much-needed respite. In the last 24 hours, Ethereum [ETH] Bitcoin up 14% [BTC] There was an increase of 11%, and the liquidation amount fell to approximately $315 million.
This uptick comes after a significant loss period, as it happens here…
rising from the ashes?
The Purpose Bitcoin ETF, launched in February 2021, has seen a steady inflow over the years. However, given the market bloodbath, the ETF lost over 50% of its stake in a single day. Canada’s Purpose Bitcoin (BTC) ETF sold a staggering 24,500 BTC by the end of Friday, meaning they sold 50% of their stake in a single day. That’s too much BTC to sell in a single day.
This dent is visible in the graph attached here, although it managed to rise again as the bitcoin market ‘recovers’. The flow appears to align with the broader short-term trend of institutional buyers to re-invest in crypto.
While this may shed light on a “reform landscape”, Arthur Hayes had a different narrative to share with the community.
BTCC – Objective ETF 24,500 $BTC North American at the close of Friday. I am not sure how they execute the redemption, but this is physical BTC to sell in very short time frame. pic.twitter.com/BY7foKdPjY
— Arthur Hayes (@CryptoHayes) June 19, 2022
The price of bitcoin has dropped to a low of $17,600 in the past 72 hours.
“About 20% down a good volume from Friday. Smells like a compulsive seller started a run at the stop,” he said.
Ergo, despite the small increase in price, this could raise red flags in the crypto-market. Furthermore, given the turmoil of the crypto-lending market within the crypto-market, Hayes expects several more episodes of forced sales. He gave opinion,
“After the sellers dumped their bags, the low volumes rallied sharply. Given the bad risk position mgmt by cryptocurrency Expect more pockets of extortion, more than lenders and generous lending terms. B T c And ETH As the market finds out who is swimming naked.”
absolute horrors in the market
Result? This is a huge crypto-crash amounting to billions of dollars.
There was a ruckus in the market last week. Celsius Network, one of the largest lenders in the cryptocurrency industry, has announced that it has stopped withdrawals, swaps and transfers.
Later during the week, Three Arrows Capital — one of the largest hedge funds in the industry — showed a crisis. Analysts revealed that his multimillion-dollar position was very close to expiration, raising further red flags for the community.
To make things worse, consider this – FTX, Deribit, and BitMEX all liquidated Three Arrows Capital positions over the past week, when the crypto-hedge fund known as 3AC placed a margin call. failed to complete. Now, Singapore-based 3AC owes BitMEX approximately $6 million.