Crypto Crash: Forced Selling Calms Down; Correlation with equities again in focus

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Regards! Welcome to Distributed Ledger, our weekly crypto newsletter, hitting your inbox every Thursday. Let me tell you what is happening in the current bear market.

As always, you can find me here on Twitter @FrancesYue_ To send feedback or let us know what you think we should cover. You can also email me to share your personal stories with Crypto.

Crypto in a snap

Bitcoin BTCUSD is down 5.8% over the past seven days to trade at around $20,374 on Thursday, according to data from CoinDesk. Ether ETHUSD fell nearly 5.8% to around $1,095 in seven days. Meme token dogecoin DOGEUSD is up 7.9%, while another doge token, Shiba Inu SHIBUSD, is up nearly 23.3% from seven days ago.

Crypto Metrics

biggest loser value %7 days return
DeFiChain $1 -16.7%
Kucoin $10.41 -11.6%
festival $0.06 -11.3%
cardano $0.47 -10.9%
CETH 22.27 -9.1%
Source: CoinGecko, as of June 23

Please calm down

Over the past weekend, a sharp sell-off took bitcoin to $17,601 before retracing to around $20,382 on Thursday. According to Thomas Dunlevy, senior research analyst at Messari, most of the decline was due to forced sales.

One of the largest crypto lenders has halted withdrawals since June 12 following the cryptocurrency market chaos, while Three Arrows, one of the most active hedge funds in the industry, has reportedly received margin calls from multiple lenders, according to Financials. could not be completed. Times. Investors were concerned about contagion risks – I wrote more about that here.

During the recent sell-off, Dunleavy said bitcoin and ether traded slightly smaller, which is “very unusual.” Bitcoin and ether generally outperform smaller coins during market downturns as investors go into “flight to safety” mode.

According to Dunleavy, the latest trend is “a sign that people are selling whatever they want to meet any sort of margin requirement.”

Since then, the market has calmed down somewhat, while “liquidity in terms of actual volume, which surges during the sell-off, has also eased,” Dunlavy said. “I think the broader question right now is whether we will choose to correlate with the stock market once the crypto market transition has slowed.”

“If Macro Trades Down, Will Bitcoin See Another Leg Down? Or shall we hold water here?’ said Dunlavy.

sbf rescue,

Crypto billionaire Sam Bankman-Fried is injecting money into two crypto companies that are in the spotlight after Celsius and Three Arrows showed signs of trouble.

Celsius rival BlockFi announced on Tuesday that it has received a $250 million revolving credit line from crypto exchange FTX to bolster its balance sheet. BlockFi announced last week that it would lay off 20% of its workforce as the rapidly changing macroeconomic environment continues to impact the company’s growth rate.

Meanwhile, crypto brokerage Voyager Digital Ltd announced that its subsidiary, Voyager Digital Holdings, has raised $200 million in cash, as well as a USDC turret and a 15,000 BTC turret from Alameda Ventures, the venture capital arm of Bankman-Fried’s quantitative crypto trading firm Alameda, secured. Is compromised. Research.

Voyager Digital Limited also announced its subsidiary Voyager Digital LLC’s commitment to Three Arrows, which includes 15,250 bitcoins, or approximately $310 million based on the crypto’s recent price, and $350 million of stablecoin USDC. The company said Voyager could issue a notice of default to Three Arrows for failing to repay its debt.

short bitcoin etc

ProShares launched its Short Bitcoin Strategy ETF, or BITI for short, on Tuesday

BITI, the first inverse exchange-traded fund backed by Bitcoin in the US, comes at a time when Bitcoin is down nearly 70% from its all-time high.

According to the fund’s factsheet, the BITI S&P CME Bitcoin Futures Index tracks the inversion of daily performance.

“BITI allows investors to easily gain low exposure to Bitcoin by buying an ETF in a traditional brokerage account,” Michael L. Sapir, CEO of ProShares, wrote in a statement Monday.

Still, like other inverse ETFs, BITI is designed to track the difference from the underlying index in a single day. Investors who hold the fund for more than one day may achieve higher than expected returns, especially when market volatility increases.

Crypto companies, funds

shares of Coinbase Global Inc., COIN is up 9.6% on Thursday to $56.83, and it is up 11% in the last five trading sessions. Michael Saylors micro strategy inc

MSTR rose 4.9% on Thursday to $179.20 and is up 11% over the past five days.

mining company Riot Blockchain Inc.

Shares of RIOT rose 2.9% on Thursday to $4.74 and is up 4.6% over the past five days. shares of Marathon Digital Holdings Inc.

The MARA fell 0.1% to $6.74, up 2.8% over the past five days. another miner, Ebang International Holdings Inc.EBON fell 5.5% to $0.46 on Thursday after losing 15.6% over the past five days.

Overstock.com Inc.

OSTK shares traded at $31.19, down 5.1%. Shares are up 11.4% over five sessions.

shares of block inc

SQ, formerly known as Square, rose 8.6% to $65.89, contributing to a 14.6% weekly gain. Tesla Inc.TSLA’s shares are down 1.7% at $696.48 while up 8.9% over the past five sessions.

PayPal Holdings Inc.

PYPL fell 0.3% to $72.78 and is up 2.2% over the five-session period. Nvidia Corp.

NVDA shares fell 1.9% to $160.46, up 2.8% in the last five trading days.

Advanced Micro Devices Inc.

Shares of AMD fell 2.7% on Thursday to $81.46, down 0.7% from five trading days earlier.

in crypto funds, ProShares Bitcoin Strategy ETF

BITO was up 1.3% on Thursday to $12.63, while its Short Bitcoin Strategy ETF fell 1.4% to $40.73. Valkyrie Bitcoin Strategy ETF

BTF rose 1.3% to $7.85 during VanEck Bitcoin Strategy ETF

XBTF is up 0.7% to $19.75.

Grayscale Bitcoin Trust

GBTC is up 1.2% to $13.12.

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