- The selloff comes after the crypto exchange Celsius voluntarily filed for bankruptcy due to illiquidity. Currently, crypto exchanges struggle with a liquidity crunch and that has led to suspending withdrawals and other mechanisms for investors.
The cryptocurrency market continues to face wintry sentiment from investors. On Saturday, there has been a massive decline in trading volumes which pushed the cryptocurrency market cap below $925 billion. The selloff comes after the crypto exchange Celsius voluntarily filed for bankruptcy due to illiquidity. Currently, crypto exchanges struggle with a liquidity crunch and that has led to suspending withdrawals and other mechanisms for investors. The leader of the market, Bitcoin trades over $20,500 followed by its counterpart Ethereum performing slightly over the $1,200 mark.
Both Bitcoin and Ethereum are trading marginally higher currently. As per CoinMarket data, Bitcoin is performing at $20,655.68 with a market cap of $394.33 billion, while Ether is around $1,201.73 with a valuation of 145.88 billion.
Bitcoin’s dominance is around 42.56% flat compared to the previous day.
Bitcoin has made a weekly drop of nearly 5% and Ether’s weekly downside is around 1.5%.
The overall crypto market cap is at $926.32 billion down by 1.10% over the last day. In terms of volumes, the market currently records transactions to the tune of $55.47 billion lower by 38.76% over the last 24 hours. The total volume in DeFi is currently at $5.33 billion, 9.61% of the total crypto market 24-hour volume. The volume of all stablecoins is now $50.87 billion, which is 91.71% of the total crypto market’s 24-hour volume.
In 24 hours, the top performing cryptocurrencies are – Serum surging 7.5%, Algorand gaining 4.4%, Monero XMR soaring 4.3%, Sythetix SN up over 3.9%, and Zcash advancing 2.9%. On the contrary, the top underperforming cryptocurrencies are – Quant plunging 9.75%, Convex Finance slipping over 8.5%, THORChain diving 7.3%, TerraClassicUSD (USTC) shedding 7%, and Compound tumbling over 6%.
Among the top trending cryptocurrencies in 24 hours are Terra Classic (LUNC) down 6.2% at $0.0001029, Celsius at $0.7572 lower by 4.62%, Bitcoin below 0.94%, Polygon (MATIC) at $0.6937 marginally down, and CEEK VR at $0.2866 nosediving by 19.9%.
Celsius was in a sharp rally on the previous day after the company voluntarily opted for bankruptcy. Celsius halted its withdrawals in June due to heavy losses arising from a deep depression in the crypto market on the back of macroeconomic uncertainties. Among the negative factors, Celsius pointed to crypto exchanges was the implosion of Terra LUNA (“Luna”) and its TerraUSD (UST) stablecoin (“UST”) – as it accelerated the onset of a “crypto winter” and an industry-wide sell-off in 2022.
As of July 13, 2022, Celsius’s liabilities are around $5.5 billion, and assets are valued at around $4.31 billion. Thereby, the company has a deficit of $1.19 billion on its balance sheet. But Celsius has also announced that they have ample liquidity with $167 million in cash to support operations.
Many other crypto exchanges have halted their withdrawals such as Binance, CoinFlex, Vauld, and Voyager Digital among others. The steep sell-off in the crypto market has also led to the liquidation of hedge funds like Three Capital Arrows (3AC).
Notably, Celsius’ bankruptcy comes when the value of mining rigs is nosediving with Bitcoin prices in a sharp downturn.
A latest Bloomberg report stated that the industry observers had speculated that the mining business could be for sale as a way to raise cash since Celsius halted investor withdrawals last month. Besides any bankruptcy-related complications that may now arise, a possible offloading of the rigs could prove to be troublesome. Matthew Kimmell, digital asset analyst at CoinShares said that Celsius Mining selling machines would add downward pressure to already falling machines prices.
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