The latest price moves in bitcoin ($BTC) and crypto markets in context, for June 29, 2022.Read MoreFeedzy
Good morning, and welcome to First Mover. I’m Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights.
Market Moves: Bitcoin is down 5% as the liquidation of crypto hedge fund Three Arrows Capital is ordered by a British Virgin Islands court.
Bitcoin (BTC) has dipped below $20,000 as the news of the liquidation of crypto hedge fund Three Arrows Capital (3AC) has been ordered in a court in the British Virgin Islands.
The world’s largest cryptocurrency by market capitalization was trading at around $19,700, down 5% on the day.
With uncertainty in the market rife right now, Jason Deane, analyst at Quantum Economics, said “the slightest negative revelation is heavily amplified in such a dire economic backdrop where people consider crypto assets as risk-on trades.”
“Coupled with exchanges under pressure and DeFi platforms being stress-tested to a degree only imagined by those who built them in the ‘good’ times, that uncertainty is not unfounded,” added Deane.
Looking ahead, Deane said that with no clear path forward as yet, his view is that this nervousness in the market will continue for “some time” and that there is probably more shakeout to come, possibly from the mining sector which is worth keeping a close eye on.
In traditional markets, European stocks retreated as global sentiment remained volatile. The pan-European Stoxx 600 dropped by 1.2%.
By Jamie Crawley
The liquidation of crypto hedge fund Three Arrows Capital (3AC) has been ordered by a British Virgin Islands (BVI) court, a person with knowledge of the the situation told CoinDesk.
The court order was made on June 27.
Partners from New York-based Teneo Restructuring have been called in to handle the insolvency, the person said.
Three Arrows Capital, founded by Su Zhu and Kyle Davies in 2012, has suffered heavy losses in the recent sharp downturn in the crypto markets. The possibility of insolvency was reported in mid-June after it incurred at least $400 million in liquidations.
Crypto brokerage Voyager Digital (VOYG.TO) issued a default notice to 3AC this week after the fund failed to make required payments on loans of 15,250 bitcoins and $350 million in USDC. Voyager’s shares had plunged after it disclosed its exposure to 3AC.
3AC has been an active investor in the digital asset industry in recent years with investments across non-fungible tokens (NFTs), decentralized finance (DeFi), layer 1 blockchain firms and crypto companies.
Teneo declined to comment. 3AC did not immediately respond to CoinDesk’s request for comment.
The court order and Teneo’s role was reported earlier by Sky News.
Today’s newsletter was edited by Parikshit Mishra and produced by Stephen Alpher.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Welcome to The Protocol, CoinDesk's weekly wrap-up of the most important stories in cryptocurrency tech…
Bitcoin zoomed above $97,000, bringing hopes of breaching the landmark $100,000 level on social media,…
Bitcoin layer-2 network GOAT will soon let dogecoin (DOGE) users stake their tokens to earn…
There’s something about major psychological price levels, like bitcoin's (<a href="https://www.coindesk.com/price/bitcoin/ " target="_blank">BTC</a>) $100,000 mark.…
Publicly traded bitcoin (<a href="https://www.coindesk.com/price/bitcoin/ " target="_blank">BTC</a>) miners are approaching the milestone of an aggregated…
Bitcoin's (<a href="https://www.coindesk.com/price/bitcoin" target="_blank">BTC</a>) pullback from the $100,000 level after continuously hitting fresh new highs…