THE RUNDOWN
• Digital asset investment products saw outflows totalling US$39m with total assets under management (AuM) now at their lowest point since February 2021, at US$36bn, down 59% from the November 2021 peak.
• Last week, BTC fell below $20,000, reaching lows of $17,600 before recovering above $20,000 for the weekly close amid the market-wide liquidation of 3AC's assets. (Read article)
• Several large downwards price movements have caused bitcoin’s 7-day volatility to hit its highest level since May 2021. (Read article)
• Following the Three Arrows Capital collapse, the GBTC discount has reached record lows of 34%. GBTC will receive its ETF conversion verdict on July 6th. (Read article)
• The largest Canadian bitcoin ETF, Purpose, saw its AUM plunge 50% on Friday, indicating a massive capitulation from a forced seller. In contrast, BITO saw its strongest inflows since its launch last week. (Read article)
• CME futures are trading above offshore market as sell-off sent FTX futures in brief backwardation. (Read article)
• The cash flows of bitcoin mining keep dropping to new lows, and Antminer S9 is now in negative territory. (Read article)
• The deteriorating profitability of mining has forced the public miners to start liquidating their bitcoin holdings. (Read article)
• Solend recently advanced a governance proposal that would allow the Solend team to temporarily overtake a large and highly levered account. After intense backlash from the community, the proposal was later overturned as users returned to the ballot. (Read article)
A Deep Bite
Three Leadership and Entrepreneurship Lessons from the Crypto Crash
Cryptocurrencies have crashed, returning their worth to what they have been in 2020 and will proceed to crash for some time. However decadence can present elementary management classes for actors in each this discipline and past, constructing on present analysis in psychology and administration science. More here
Weekly Bites
Former SEC Lawyer Sees More Crypto Regulations After Celsius Network's Debacle
Former Securities and Exchange senior counsel Howard Fischer said the move by several U.S. states to open an investigation into crypto lender Celsius Network's recent freeze on withdrawals will ultimately lead to further regulation and oversight at the federal level. More here
Celsius’ crisis exposes problems of low liquidity in bear markets
Third-party custodians like Celsius failing is a reminder of one of the most basic principles of crypto; not your keys, not your coins. The dust from the Terra debacle hasn’t yet settled and but another crisis is shaking up crypto markets. The multi-billion-dollar crypto lending and staking platform Celsius is the latest crypto company to be beset by controversy. More here
Is there a way for the crypto sector to avoid Bitcoin’s halving-related bear markets?
BTC’s high volatility and halving-related bear markets tend to drag down investment and interest in the entire crypto market. Can this be avoided? More here
Virtual Ponzi Scheme Implodes - Cryptocurrency Masterminds Are Missing
Nothing could go wrong with the latest innovation: Cryptocurrency. Oops! It turns out there was a "hidden" weakness. New buyers were required to reward previous buyers, thereby attracting more new buyers, just like in Charles Ponzi's scheme (and the countless others that occurred before and after his). Should sellers outnumber buyers, the cycle reverses. More here
Top five coins to explode while the market is going down
While the current market meltdown had its triggers which date back to the de-pegging of Terra’s UST stablecoin, and the Fed’s actions to the growing inflation, Bitcoin (BTC), Ethereum (ETH), and the majority of altcoins have taken a massive beating in response. While the losses are presumably encompassing, there are altcoins that have maintained relative growth over the past week when the meltdown intensified. More here
Ethereum price bulls get some relief as Celsius starts re-payments
ETH bulls seeming have been able to finally stabilize somewhat the price action, which had been totally dominated by bears for the past days, weeks, and months. News that Celsius Network has started re-paying some of its debts, sending back $10 million in DAI to Compound Finance, and their open commitment to working with regulators in order to stabilize liquidity and operations could help the entire cryptocurrency market to gain some footing. More here
Tweet Of The Week
One thing most people don't fully grasp: it takes years, often decades, to go from a new infrastructure-level technology breakthrough (like crypto) to a vibrant ecosystem of mainstream applications.
— Fred Ehrsam (@FEhrsam) June 20, 2022
