What are cryptocurrencies? | uncomplicated
Bitcoin has dropped below $24,000, reaching its lowest levels since late 2020.
More than $200 billion was wiped out of the entire cryptocurrency market on Monday morning.
It is the latest in a series of price drops for the cryptocurrency, which has seen it drop more than 60% in value over the past seven months.
While many cryptocurrency holders are liquidating their assets, crypto lender Celsius told customers that they would be temporarily unable to withdraw funds from the platform.
Cryptocurrency exchange Coinbase also announced that it is recruiting over 1,000 employees after previously terminating job offers. The company earned US$ 800 million last year.
Celsius holds 409,260 stETH tokens
Celsius, which froze withdrawals last weekend, also holds 409,260 stETH tokens.
Celsius lost nearly $71 million earlier when betting stETH on Stakehound because Stakehound lost the keys, according to Johnny Louey and Andy Hoo, analysts at the Huobi Research Institute.
“What Celsius can do is sell its stETH to buy ETH on the market to satisfy customer requests,” Noelle Acheson, head of market insights at cryptocurrency marketplace maker Genesis, told CoinDesk.
Adam SmithJune 15, 2022 2:00 pm
Bill Gates Says NFTs Are Based On ‘The Biggest Fool Theory’
Billionaire Bill Gates has once again spoken out about cryptocurrencies and non-fungible tokens, claiming they are “100% based on the theory of the greater fool – that someone is going to pay more for it than I am”.
Speaking at the TechCrunch keynote, he joked, “Obviously, digital images of monkeys are going to improve the world immensely, and that’s so amazing.”
As the largest private farmland owner in the US, he added: “I’m used to asset classes like a farm where they have production or a company where they manufacture products.”
Anthony CuthbertsonJune 15, 2022 1:34 pm
Bitcoin price swings above 2017 peak
A further 10% drop in price early Wednesday morning left bitcoin hovering above $20,000.
Rewind almost five years and this was the peak seen in 2017 after a record rally. If it fails to maintain support at this key level, analysts fear that even more losses could be on the way. BTC is currently around 70% below its 2021 record, with major corrections in the past wiping out over 80% of the cryptocurrency’s value.
You can read more about it here.
Anthony CuthbertsonJune 15, 2022 12:05
Crypto needs protection from a liquidity crisis
Cryptocurrency lenders and exchanges need to leverage adult tools to protect against a liquidity crisis, according to Dr. Anna Becker, co-founder of AI trading platform EndoTech.
“In the same way that trading platforms are growing by incorporating volatility into their trading strategy, for example with the use of algorithmic trading as opposed to the old emotional buy-and-hold trading model, cryptocurrency lenders and exchanges need to leverage adult tools to protect against a liquidity crisis like the one we are seeing,” said Dr. Becker.
“It is unacceptable that credit institutions and exchanges prevent customers from accessing their funds. I urge regulators to crack down on cowboy cryptocurrency companies that are robbing innocent people and help bring the market to maturity.”
Adam SmithJune 15, 2022 12:01
Adam SmithJune 15, 2022 11:30 am
Hedge fund tweet means more speculation
A tweet from cryptocurrency hedge fund Three Arrows Capital has caused more fear in the market. The hedge fund is liquidating its holdings in cryptocurrencies admit the price drop.
“We are in the process of communicating with the relevant parties and fully committed to resolving this,” tweeted former Credit Suisse Group AG trader Zhu Su from his verified account, without providing further details.
Three Arrows began withdrawing a cryptocurrency called Stad Ether, or stETH, from decentralized platforms last month, reports Bloomberg.
Adam SmithJune 15, 2022 11:00 am
Cryptocurrency prices this morning
Today, Bitcoin is down 6.13% to $21,072. Ethereum is down 8.52% to $1,114.08.
Adam SmithJune 15, 2022 08:32
MicroStrategy says it can withstand more volatility
American software developer MicroStrategy says it has not received a margin call against its bitcoin-backed loan and could withstand more volatility in the cryptocurrency market.
“We can always contribute additional bitcoins to maintain the required loan-to-value ratio,” MicroStrategy said in a statement, according to Reuters.
“Even at current prices, we continue to hold additional unpromised bitcoins that are more than enough to meet our requirements under the loan agreement,” the company said.
Vishwam SankaranJune 15, 2022 7:30 am
Bitcoin Could Sink Further If It Drops Below $20K, Expert Says
Arthur Hayes, former head of BitMEX, said that if the value of bitcoin drops below the $20,000 mark, “massive selling pressure” could ensue, which could further drive down prices for the top cryptocurrency.
The Ethereum price could also be similarly impacted if it dips below $1,000, he said.
“If those levels break, $20K in BTC and $1K in ETH, we can expect massive selling pressure in the spot markets as traders hedge theirs,” Hayes said.
“We can also expect that there will be some OTC resellers that will not be able to adequately protect themselves and could go bankrupt,” he added.
Vishwam SankaranJune 15, 2022 7:00 am
Bill Gates Criticizes Cryptocurrency For Relying On ‘Biggest Fool’ Theory
Bill Gates has dismissed cryptocurrency projects like NFTs as scams based on the “biggest fool” theory.
Speaking at a climate conference on Tuesday, hosted by TechCrunch, the billionaire reportedly said it’s neither long nor short across the industry.
“Obviously expensive digital images of monkeys are going to improve the world immensely,” Gates said sarcastically, according to Bloomberg.
Vishwam SankaranJune 15, 2022 6:20 am