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Crypto Flipsider News – Bitcoin Tops $22k; 3AC’s Liquidation Crisis; Celsius Mines BTC; Binance Fined; ETH Spikes 45%

Read in the Digest:

  • Bitcoin holds above $22k and nears critical 200-week moving average.
  • Three Arrows Capital Co-Founders buy yacht amidst liquidation crisis.
  • Celsius Network Bitcoin mining approval amidst bankruptcy filing.
  • Binance fined $3.4 million by Dutch Central Bank for non-compliance.
  • Ethereum Supply in profit hits 56%, 13 million ETH staked ahead of ‘Merge’.

Bitcoin Holds Above $22k and Nears Critical 200-Week Moving Average

Joining in on the modest rally of traditional equity, Bitcoin has rallied to trade above the $22,000 mark for the first time in over a month. Having gained more than 7% since Friday, Bitcoin set a new monthly high at $22,795. 

The 7 day price chart for Bitcoin: Source: CoinMarketCap

Bitcoin, at press time, is holding out above the $22,000 level, as the 200-week moving average (M.A.) keeps bulls in check. However, analysts have predicted that Bitcoin will be unable to break through the $22k resistance in one go.

The price of Bitcoin dropped mildly to $22.1k, and bulls will certainly be praying that Bitcoin consolidates at the $22,000 mark, the current 200-week moving average (WMA) resistance. 

If this happens, it could signal the continuation of a bullish trend and see the price of Bitcoin break out above $22,600. Optimistic investors believe that this could be the catalyst that sees Bitcoin make strides towards $28,000.

Flipsider:

  • As Bitcoin rallied, BTC miners, who were hit hard by the crypto winter, moved 14,000 BTC (worth over $300 million USD) out of their wallets over fears of a continued decline.

Why You Should Care

The rally not only sets up the price of Bitcoin for an uptrend, but has seen the Fear & Greed Index jump from 21 to 30/100, extracting the leading crypto from ‘Extreme Fear’ territory for the first time since May 5th.

Three Arrows Capital Co-Founders Buy Yacht Amidst Liquidation Crisis

After falling victim to the harsh storms of the crypto winter, the debts to creditors of crypto hedge fund Three Arrows Capital, which was forced to file for liquidation, were revealed to sum up to a gargantuan $3.5 billion.

The liquidation filing, submitted on Monday, July 18th revealed that 3AC owes its biggest creditor, Genesis, $2.36 billion in under-collateralized loans. Other creditors include Blockchain.com and Voyager Digital.

The parent company of Genesis, Digital Currency Group Inc. (DCG), attempted to recover a portion of the funds through an arbitration process in New York, but failed to recoup any of the debt due to 3AC’s bankruptcy filing. DCG filed a $1.2 billion liquidation request against 3AC on Monday.

Despite going under, the filing document from advisory firm Teneo alleges that the co-founders of 3AC, Kyle Davies and Su Zhu, bought a yacht with borrowed funds, after making a downpayment of $50 million.

Flipsider:

  • A controversial part of the filing shows that Chen Kaili Kelly, the wife of Davies, filed a claim for $66 million, while Zhu himself submitted a $5 million claim.

Why You Should Care

In a 1,157-page affidavit filed in a British Virgin Islands court, creditors wrote that “3AC is insolvent and should be wound up.” The creditors of 3AC believe that the company’s management “cannot be trusted to retain any remaining assets for the benefit of creditors.”

Celsius Network Bitcoin Mining Approval Amidst Bankruptcy Filing

During a Monday court hearing in Manhattan, bankrupt crypto lender Celsius Network presented documents, including a 61-page declaration from CEO Alex Mashinsky, on how bitcoin mining would help the embatlled firm to financially restructure.

The New Jersey-based company received approval from U.S. Bankruptcy Judge Martin Glenn to spend $3.7 million to construct a new facility, and $1.5 million on customs and duties to import Bitcoin mining rigs.

Celsius lead attorney Patrick Nash told the court that Celsius already has a mining operation in the U.S. with over 43,000 mining rigs. According to the documentation, the company plans to increase that number to 112,000 by the second quarter of 2023.

According to Nash, the Celsius mining subsidiary currently mines approximately 14.2 bitcoins daily. The expansion will help the crypto lender increase its revenue.

Flipsider:

Why You Should Care

Nash also told the court that bitcoin mining could be an opportunity for Celsius to repay customers, whose withdrawals have been paused since June 12th.

Binance Fined $3.4 Million by Dutch Central Bank for Non-Compliance

Binance, the world’s largest crypto exchange by trade volume, has been slammed with a 3.325 million euro ($3.4 million USD) fine by De Nederlandsche Bank (DNB) for serious non-compliance with the country’s laws. 

In the Monday, July 18th release, the Dutch central bank disclosed that it had warned Binance about its registration status last year, as required per the 2020 Money Laundering and Terrorist Financing (Prevention) Act.

According to the Dutch Central Bank, Binance was operating in the country illegally starting from May 2020, to at least December 2021. The category three, $3.4 million fine handed to Binance is the most stringent of the central bank’s levels of enforcement.

The report acknowledges that Binance Holdings Ltd filed an appeal against the fine on June 2nd, while also applying for registration. The central bank notes that Binance’s operations in the region have since been adjusted, and are “relatively transparent.”

Flipsider:

  • Last week, the Central Bank of Spain issued a Binance affiliate with a virtual asset services provider (VASP) licence to operate in the country.

Why You Should Care

The fines and charges against Binance come as the exchange is making a push to expand its presence in Europe.

Ethereum Supply in Profit Hits 56% – 13 Million ETH Staked Ahead of Merge

In the last week, Ethereum has outperformed its biggest competitor, Bitcoin, consistently raking in higher daily gains. Ethereum gained 45% in value over the last seven days, making it the best-performing asset of the top 10 cryptos.

The 7 day price chart for Ethereum (ETH). Source: CoinMarketCap

With the price of Ethereum breaching $1,550 today, on July 19th, the ETH’s profitable supply hit 56%, marking the highest level since June 2022. According to data from Grayscale, the supply of ETH in profit went as low as 41% in June.

In the last 30 days, the price of Ethereum (ETH) has increased by 55%, leading to a 7.8% increase in the supply of ETH in profit over the same period. Grayscale also reports a resurgence in the number of ETH transactions made by whales.

With the ‘Merge’ fast approaching, the number of Ether staked on Ethereum’s Eth 2.0 staking contract has surpassed 13.78 million ETH—that represents roughly 11% of Ether’s total supply. Lido, a non-custodial liquid staking protocol, holds the biggest share of Staked ETH at 31.74%.

Flipsider:

  • Lido Finance has announced the expansion of staked Ether (stETH) into Ethereum Layer-2 scaling solutions in a bid to increase the amount of Ether staked.

Why You Should Care

ETH’s price rebound can be linked to anticipation around the upcoming Ethereum mainnet merge, which is tipped to bring major upgrades to Ethereum.

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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