The Historic June 2022 Week That Sank Bitcoin
There are moments in your life which everyone will remembers for some reason or another, moments that afterwards become part of history. In the 21st century, those moments were most likely the 11th of September 2001, the stock market crash of 2007-2008, the terrorist attacks in Madrid, Paris, London or Brussels for the respective people living there, the Covid-19 pandemic and so many more.
For the cryptosphere, last week will probably go down as a historic one. There was so much happening which we’ll need to remember in order to understand where we go from here. An overview:
It all starts with Celsius on Monday
Last Monday, crypto staking and lending firm Celsius announced in the midst of a major Bitcoin and crypto crash that it would halt withdrawals, swaps and transfers between accounts.
The market started to panic and feared a repeat of the Terra Luna collapse.
Microstrategy on Tuesday, Coinbase on Wednesday
By Tuesday, it had become clear that Michael Saylor’s Microstrategy would be in trouble if Bitcoin traded below $21,000, and that his company would face a margin call for a loan it had taken out to purchase even more crypto. Market analysts calculated that Saylor’s company lost about a billion dollars last Monday.
Meanwhile Coinbase, whose IPO in 2021 had proven to be a temporary top for Bitcoin, was suffering together with crypto prices and in response to an internal staff revolution, CEO Brian Armstrong decided to fire about 20% of his staff.
Stops on Thursday, Three Arrows on Friday and Elon gets sued
Thursday brought the scary knowledge that any fall of Bitcoin below $20k would trigger several stop losses. By Friday, there was talk of another major player, Three Arrows Capital, that could go bankrupt. So far, there has been no further news.
We hadn’t heard from Elon Musk all week as to crypto’s collapse. That changed when a disgruntled investor decided to sue Elon over Dogecoin’s new price.
Lastly, we had a scary prediction from Wall Street legend Peter Brandt over the weekend. He claimed that Bitcoin would from a double top at around $13,000 before we could see any recovery.
As said, truly a historic week. We’re as eager as you all are to see what happens next.
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