The crypto market fell once again this week as a result of investors’ anxiety and the markets’ increased susceptibility to breaking news. Ethereum (ETH) is down 4.77%…
…while Bitcoin (BTC) is down 7.98%.
One of the factors that caused the price to fall was the news that the British Virgin Islands had ordered Three Arrows Capital (3AC) to be liquidated after creditors sued the cryptocurrency hedge fund for not meeting its obligations.
Su Zhu and Kyle Davies launched 3AC, a major cryptocurrency fund, in 2012. At one point, it was said to have had $10 billion in assets under management. During the most recent crypto collapse, it lost a lot of money and was liquidated by over $400 million.
Earlier this week, Voyager Digital (VOYG.TO), a publicly-traded cryptocurrency brokerage, issued a default notice to 3AC after the fund couldn’t make the minimum repayments on loans totaling $350 million in USDC and 15,250 bitcoins.
The 3AC network has a substantial impact on the entire crypto economy. BlockFi, a cryptocurrency lender, announced that it had to liquidate some 3AC positions. As a result of its ties to 3AC, the cryptocurrency savings platform has reduced its withdrawal limit.
The mood in the crypto markets is also being impacted by the gloomy economic scenario globally. The US Q1 GDP estimates that have been revised show that the economy contracted by 1.6% during the quarter. There are currently worries that the nation will experience a technical recession.
Most altcoin markets also declined. But a few large-cap assets, like Dogecoin (DOGE) and XMR, went against the general trend and experienced reasonable profits at the start of the week.
Dogecoin had a good week because Elon Musk gave it more support. He said at the World Economic Forum that SpaceX and Tesla employees were the ones who first told him about DOGE.
In contrast to an otherwise lukewarm and trendless cryptocurrency market, DOGE has demonstrated notable bullish alpha over the past two weeks. In the last 14 days, the coin has increased by 28% while Ethereum (ETH) was down about 8% at that time.
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