With crypto melting down, short sellers have been adding more bets against Tether, the world’s biggest stablecoin, The Wall Street Journal reported Monday (June 27).
This comes with a big market selloff which has made the financial health of some crypto companies seem questionable. More traditional hedge funds have been doing trades to short Tether coming through Genesis Global Trading, the report said.
Meanwhile, bitcoin’s wipeout might be coming to an end, Bloomberg wrote Monday, quoting several technical indicators.
The report noted that the mood on crypto might be leveling off, with hopes that price pressures driving interest-rate hikes may be easing up.
One indicator is TD Sequential, looking at a method of counting applied to chart patterns, to look into whether a market trend has run its course. Another, the “linear regression channel,” looks at identifying statistically-unusual deviations from a line that most fits a set of bitcoin prices — and both of these seem to indicate the bottom has been hit already for bitcoin.
Additionally, CoinDesk reported Monday that a community dedicated to FTX native token FTT has raked in $7 million to convert into an ecosystem fund.
This will go toward community-led projects across decentralized finance (DeFi) and crypto education. The report said the community is the FTT DAO, a decentralized autonomous organization, which reportedly believes in “effective altruism,” which it said came from FTX CEO Sam Bankman-Fried.
In other news, the recent volatility of crypto has resulted in an uncertain environment in what was once a booming market, Bloomberg reported Monday.
Many investors were seeing massive returns before — but now, according to one man who spoke to Bloomberg, his returns of 25,000% are now massively depleted.
Furthermore, CNBC reported Monday that crypto hedge fund Three Arrows Capital has defaulted on a loan worth over $670 million.
Voyager Digital, which made the loan, said Three Arrows didn’t pay a loan of $350 million in USDC along with 15,250 bitcoin, which is worth around $323 million right now. Voyager said it plans to pursue recovery from the hedge fund after this.
In more crypto-related news, bitcoin miners have been tapping into cryptocurrency stashes with a number of factors curbing their profits, including a fall in prices, rising energy costs and increased competition bite.
As Reuters wrote Monday, this can be seen in the rise in how many coins miners are sending to crypto exchanges, which has been increasing since June 7. This shows that “miners have been increasingly liquidating their coins on exchanges,” according to researchers at MacroHive.
Finally, questions about the future of Celsius are rising in the wake of its decision to suspend withdrawals, TheStreet reported Monday.
While Celsius has hired attorneys to help it out, there have been reports that the company has been in talks with Goldman Sachs about a buyout, in case it goes bankrupt. However, sources told TheStreet that this isn’t correct and that Goldman wasn’t in the process of raising funds to buy the company.
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