Weekly Crypto Market Update Reports (Jun 11th- 17th,2022): Crypto winter has arrived in early summer
The crypto market kept falling over the week amid the highest US inflation rate witnessed in the last 40 years and Fed’s biggest interest rate rise. Meanwhile, Celsius, and hedge fund, Three Arrows Capital, as well as for MicroStrategy, which was on the verge of a margin call because of the bearing market. Let’s take a look at the last week of the cryptocurrency market with CoinCu through outstanding news and figures.
Market figures for the week
The capitalization of the crypto market returned to the levels observed at the beginning of 2021. The indicator decreased by 26.6% over the week, according to CoinMarketCap. The capitalization has fallen by more than three times compared with the maximum levels reached last November.
It is also worth noting that from the previous high of $823 billion recorded at the beginning of 2018, the indicator decreased by eight times by the end of that year. Meanwhile, for most of this week, the crypto market cap stood at around $900 billion.
The Cryptocurrency Fear & Greed Index was recorded as low as 7 on the 15th and 16th. The record level for the whole week was always below 10.
Bitcoin’s volatility rose from 1.1% to 4.6% over the week. The same indicator for Ether increased by 0.9% to 5.4%.
Interesting news of the week
USDD Lost Its Peg
On Monday, the Tron network‘s stablecoin, USDD, lost its peg to the US dollar, plunging as low as 91 cents, as crypto markets plummeted as investors were increasingly anxious about stubbornly rising inflation.
The funding rate on the Binance exchange for betting against, or “shorting,” the Tron blockchain’s native TRX coin declined 500% on Monday, a staggering pace that shows many investors are yearning to get into the trade. TronDAO would “deploy $2 billion to fight them,” according to Justin Sun.
stETH Loses Peg, ETH Dumps Hard
Although The Merge test on the testnet was successful, since the release of stETH until now, the price of ETH has plummeted by more than 38% from the peak of $1681 to $1027.
The cause comes from the “FUD” related to stETH (ETH staking on Lido protocol) being depeg and the Celisus lending platform having liquidity problems related to ETH, which are believed to be the main reasons driving the ETH price downward.
Cryptocurrency lender Celsius halts withdrawals and transfers
Cryptocurrency lender C Network, recently valued at around $3 billion, told clients on Sunday that it is suspending “withdrawals, swaps, and transfers between accounts.”
The announcement will stop depositing, withdrawing and transferring assets between accounts, leading to rumors that this project is about to “default.”
Three Arrows Capital Was Massively Liquidated Around “Default” Rumors
Rumors of Three Arrows Capital being the latest to “collapse” as the crypto market swings continued to circulate on June 15. The 0xTuba account, the CEO of Psyops Capital, revealed that after speaking with Zhu Su, Three Arrows Capital’s actual situation is “many times worse than it actually is“. There are investment funds that have accused 3AC of withdrawing their money but have not seen it back.
The Fed Officially Raised Interest Rates By 0.75%
At the end of the last session, the Federal Open Market Committee announced to raise interest rates to 75 basis points, raising the benchmark interest rate to 1.5% – 1.75%. This is the highest level since the Covid pandemic began in March 2020.
Crypto.com Announced That It would Cut 5% Of The Company’s Staff
The trend of “tightening money” of major crypto exchanges continues with the latest name of Crypto.com, the platform that emerges with huge advertising deals in 2021. On June 11, CEO Kris Marszalek of cryptocurrency exchange Crypto.com announced that it would cut 5% of the company’s staff, equivalent to 260 employees.
Elon Musk Sued For Dogecoin Shilling
An American citizen named Keith Johnson has filed a lawsuit against Elon Musk and his two companies as CEO, SpaceX, and Tesla, alleging that they both fraudulently lured investors into the cryptocurrency Dogecoin, causing heavy damage.
Johnson claims to be representing a group of investors that have lost money from investing in Dogecoin since April 2019. This person asked the defendant to pay a total of $258 billion, as well as wanted the federal court located in New York to order blocking Musk and his companies from promoting Dogecoin, claiming Dogecoin is gambling according to federal and state law.
Inverse Finance Was Hacked
On June 16, a security vulnerability of Inverse Finance was attacked. Peckshield is always an early warning unit for DeFi projects about security holes. This time, the name mentioned is Inverse Finance. However, the DeFi community stirred when the banteg tweeted asking Peckshield to delete this tweet.
The market decline before and after the Fed announced interest rates is not surprising. However, the question is, will Bitcoin’s support at $20,000 this week survive the storm? Follow CoinCu to read the Weekly Crypto Market Update Reports for more highlights of the week.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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