August 14, 2022

Results of the week: bitcoin closed the worst quarter since 2011, and $4 billion in miner loans were at risk of default

Results of the week: bitcoin closed the worst quarter since 2011, and $4 billion in miner loans were at risk of default

Bitcoin Closes Worst Quarter Since 2011 With 56% Drop, Voyager Digital Issues 3AC Notice Of Non-Compliance obligations due to non-payment of the loan, the market crisis threatened to default on $4 billion in miner loans and other events of the outgoing week.

The second quarter of 2022 was the worst for bitcoin in 11 years

The fall in the price of the first cryptocurrency in April-Juneby 56.2% was the strongest since the third quarter of 2011, when the loss was 67%. During this period, bitcoin fell from $45,000 to $19,884. During the bear markets of 2014 and 2018, the quarterly dynamics did not exceed 39.7% and 49.7%, respectively.

Investor Michael Burry, who predicted the 2007 mortgage crisis, admitted that the current market situation is the middle of a bearish cycle for bitcoin.

“Adjusted for inflation in the first half of the S&P500 fell by 25-26%, Nasdaq - by 34-35%, bitcoin - by 64-65%. It was multiple compression. Then there is the decline in income. So maybe halfway through,” Burry wrote.

At the time of writing, digital gold is trading near $19,000. Over the past week, the asset’s quotes have fallen by more than 11%.

Results of the week: bitcoin closed the worst quarter since 2011, and $4 billion in miner loans were at risk of default

Results of the week: bitcoin closed the worst quarter since 2011, and $4 billion in miner loans were at risk of default

Hourly BTC/USDT chart on Binance exchange. Data: Trading View.

All cryptocurrencies from the top 10 by market capitalization were in the red zone. Solana (-23.3%) and Ethereum (-15.2%) showed the worst dynamics.

Results of the week: bitcoin closed the worst quarter since 2011, and $4 billion in miner loans were at risk of default

Results of the week: bitcoin closed the worst quarter since 2011, and $4 billion in miner loans were at risk of default

Data: CoinGecko.

According to the CoinCodex service, for a week fromdigital assets with a moderate capitalization, the algorithmic stablecoin TerraClassicUSDT has risen the most. The price of USTC rose by 407% amid increased trading volumes.

The token of the WOO Network project fell in price more strongly than others. WOO quotes fell by almost 33%.

Results of the week: bitcoin closed the worst quarter since 2011, and $4 billion in miner loans were at risk of default

Results of the week: bitcoin closed the worst quarter since 2011, and $4 billion in miner loans were at risk of default

Data: CoinCodex.

The total capitalization of the cryptocurrency market amounted to $920 billion. The Bitcoin dominance index decreased to 40.5%.

Voyager Digital Issues Default Notice to 3AC, Virgin Islands Court Orders Liquidation of Fund

Cryptocurrency broker Voyager Digital senthedge fund Three Arrows Capital (3AC) a notice of default due to non-payment of a loan. The broker issued a loan to 3AC for 15,250 BTC (over $320 million) and 350 million USDC. On June 24, the company asked to close part of the debt in the amount of 25 million USDC, and then demanded to repay the entire loan in BTC and stablecoins by June 27.

The Court of the British Virgin Islands ruled to liquidate the hedge fund. Later it became known that and Deribit platforms were among the creditors demanding this step.

At the same time, the Central Bank of Singapore condemned the actions of the fund and issued a reprimand for providing false information and exceeding the allowed threshold of assets under management.

3AC, in turn, filed for bankruptcy in a New York court. Chapter 15 of the United States Bankruptcy Code may protect a fund from forfeiture of US assets in the course of liquidation.

The fall of bitcoin put $4 billion in miner loans at risk of default

Bloomberg reported that some miningcompanies have faced problems servicing loans secured by bitcoin mining equipment. According to the publication, loans worth $4 billion are at risk of default.

JPMorgan analysts believe that those in need ofliquidity mining companies in the third quarter are able to continue to put downward pressure on the price of bitcoin, if the profitability of mining does not improve. Public players today account for about 20% of the hashrate.

This week hosting provider Dynamics Miningterminated the agreement with the provider of equipment and services for mining bitcoin Compass Mining due to unpaid bills. The latter announced the resignation of CEO Witt Gibbs and CFO Jody Fisher.

MicroStrategy and El Salvador buy bitcoin

Analyst software provider MicroStrategy purchased an additional 480 BTC at an average price of $20,817. The company owns 129,699 BTC purchased for $3.98 billion at an average price of $30,664.

The Salvadoran government also purchased an additional 80 BTC for a total of $1.52 million.

Harmony offered a reward for the return of stolen $ 100 million. Analysts admitted that Lazarus was behind the hack

At the beginning of the week, the Harmony protocol teamoffered a $1 million reward for returning $100 million worth of crypto assets stolen from the Horizon cross-chain bridge or information that would lead to hackers. After criticism from the community, it was increased to $10 million.

Elliptic specialists stated that forThe North Korean-linked hacker group Lazarus could be the attack on Horizon, based on a similar attack vector to the Ronin sidechain. According to analysts, hackers have already sent 41% of stolen crypto assets to Tornado Cash.

At the same time, Reuters noted that the fallThe crypto market was jeopardized by funding for the DPRK’s arms program, as digital assets stolen by hackers could sink “for hundreds of millions of dollars.”

What to discuss with friends?

  • The FBI has included the founder of OneCoin Ruja Ignatova in the top most wanted criminals.
  • Meta will close the Novi digital wallet.
  • The fall of bitcoin has deprived 82,600 (75%) of investors of the status of millionaires.
  • Popular TikTok blogger Xabi Leim has become a Binance Ambassador.

OpenSea reported a leak of user data

Leading NFT marketplace OpenSea reported a leakuser data by an employee of, an email delivery service. He gave a third party the email addresses of customers. OpenSea warned of possible consequences in the form of phishing attempts.

FTX CEO warns of 'hidden insolvency' of some crypto exchanges

FTX CEO Sam Bankman-Fried believes that somethird-tier bitcoin exchanges are close to bankruptcy. The billionaire himself is far from altruistic and is not ready to “rescue” all the troubled companies that “have gone too far”, attracting new customers by paying generous interest on deposits.

Hard times for crypto exchanges were announced andKaiko analysts. In their opinion, the platforms will be tested by the non-native market conditions, the reduction in client activity and the problems of a number of industry participants.

CoinFLEX Sends Default Notice to Founder Roger Ver founder Roger Ver owes $47 million to cryptocurrency derivatives platform CoinFLEX. The latter sent a notice of default to Bitcoin-Jesus.

Earlier, the head of the company, Mark Lamb, said thatthe company had problems because of a “long-term” client who was given a loan on unique terms. There is no liquidation price for his position - in return, he provides liquidity to the platform. However, against the background of the crisis, his position became unprofitable.

To pay off this client's debt and resume user withdrawals, CoinFLEX announced the Recovery Value USD (rvUSD) token.

Ethereum Developers Delay Activation of Difficulty Bomb

On June 30, the Gray Glacier hard fork took place on block #15,050,000 on the Ethereum network. The only goal of the update was to delay the activation of the "difficulty bomb" by 700,000 blocks.

Binance is in "rescue talks" for over 50 companies

Cryptocurrency exchange Binance intends to helpto industry participants experiencing "slight liquidity shortages" and is negotiating with more than 50 companies. This was stated by the head of the platform, Changpeng Zhao.

Earlier, the head of BlockFi Zak Prince said that the American division of the FTX exchange will issue a $400 million revolving loan to the landing platform and will receive an option to buy the company for $240 million.

Zhao noted that Binance could have been the first to take advantage of the acquisition opportunity, but did not.

US Extradites Ex-Monero Developer Ricardo Spagni to South Africa

A court has ordered former Monero lead developer Ricardo "Fluffypony" Spagni to surrender to the U.S. Marshals Service on July 5 for extradition to South Africa.

In July 2021, law enforcement officers detained Spagniat the Nashville airport (USA) at the request of the South African authorities, who accused him of fraud for $ 100,000. The case is not related to Monero, but to his work in the South African company Cape Cookies in 2009-2011.

Also on ForkLog:

  • The head of the US SEC confirmed the classification of bitcoin as a commodity.
  • Mark Cuban, Snoop Dogg and Mike Novogratz named milestones for the end of the crypto winter.
  • Grayscale sued the SEC for refusing to convert GBTC into ETFs.
  • Polkadot is modernizing its governance structure.

What else to read and see?

ForkLog analyzed the most relevant on-chain metrics and found out what to expect from the price of the first cryptocurrency in the short and medium term.

Educational cards told what DEX, staking and moving average are. They also explained what the Stock-to-Flow (S2F) model is criticized for and what happened to the Ronin sidechain.

Traditional digests collected the main events of the week in the fields of cybersecurity and artificial intelligence.

The cryptocurrency industry is attracting more and morenumber of institutional players. This is evidenced by new investments in infrastructure, and the increasing attention that companies are showing to bitcoin as an asset class. The most important events of recent weeks are in the ForkLog review.

On June 27, live ForkLog LIVE discussed the latest news and talked about bitcoin and the market. The guests were traders Vladimir Cohen and Ton Weiss.

June 29 held another broadcast, the main topicwhich became altcoins. The guests were trader Vladimir Cohen, CEO and CTO of HyperFlex Nikita Inshakov and Vladimir Maslyakov, as well as the host of the Basic Block podcast Sergey Tikhomirov.

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