Most cryptocurrencies are still trying to recover lost ground, with only a handful of altcoins making positive strides over the last week. The global crypto market capitalization continues to shrink as panic selling reaches new heights.
BTC Slides Beneath $20K
Following a sharp rebound last week, bitcoin (BTC-USD) has again dropped below the critical support level of $20,000 for the second time this month. That said, compared to previous weeks, BTC has been able to recoup some of its value, registering around a 10% loss over the past seven sessions.
The latest data highlights that bitcoin’s performance throughout June has been much worse than its altcoin counterparts, shedding over 40% of its overall value. With “crypto winter” now settling in faster than expected, BTC’s losses have mostly stemmed from the continuous liquidations by large holders.
For instance, Cypherpunk Holdings liquidated all of its BTC holdings worth $4.7 million (214.7203 BTC) as the prices continued to tumble.
Meanwhile, MicroStrategy has scooped up another 480 BTC worth around $10 million between May 3rd and June 28th while the broader market was experiencing sell-offs. With this new purchase, the total BTC held by MicroStrategy and its subsidiaries has reached 129,699 BTC.
Altcoins Suffer in Tandem
Altcoins are mimicking BTC’s movements to a large extent, shedding off significant values from previous all-time highs. Over the past seven sessions, Ethereum (ETH-USD), the second-largest cryptocurrency by market capitalization, has also dipped approximately 10%, bringing its 30-day decline to approximately 47%. Overall, investor sentiment remains negative, and traders are selling rallies, leaving the bearish bias intact.
Almost every altcoin from the top-10 list, such as BNB, XRP, and ADA, is sitting in the red zone this week, with the exception being Dogecoin. SOL, the native token for the Solana network, dropped about 14% this week as selling pressure triggered a pullback and pushed the token’s value below a critical support level.
Polkadot (DOT) and Algorand (ALGO), too, have lost around 12% and 7.4%, respectively, sustaining the persistent downward trend that began in April this year.
In comparison to the above, Elrond (EGLD) has turned out to be one of the biggest losers of this week, with the value of EGLD dropping nearly 18%. Havoc is being wreaked across the broader market, with small-cap coins facing the most heat.
Memecoins are Pushing Back Against Bears
While the broader market continues to slide, a handful of tokens sidestepped the ongoing sell-off. Even though the gains registered are moderate, they have been able to reinvigorate some hope for investors.
Popular memecoin DOGE (Dogecoin) has registered around 0.4% gains this week, primarily driven by Coinbase’s decision to accept DOGE as payment for its commerce solutions.
ApeCoin (APE) gained around 1.8% over the last seven sessions, following the release of a new track, “From The D 2 The LBC,” featuring rappers Eminem and Snoop Dogg. Meanwhile, The Sandbox’s SAND token has registered around 6.8% gains this week after inking a partnership with TIME Magazine to build the first-ever “TIME Square” in its metaverse.
This week’s outperformer is TerraClassicUSD (USTC), registering a staggering 464% gain in the past seven days. In fact, Terra’s crashed token, Terra Classic (LUNC), has also registered a massive price surge this week. Within a week, USTC’s market cap has increased significantly and is close to breaking past $500 million.
While most investors have deserted Terra after its recent implosion, a newly launched metaverse project called StarShip has implemented LUNC within its ecosystem, helping drive this latest rally.
Grayscale’s Legal Challenge, 3AC Liquidation, and More
Despite ongoing regulatory uncertainty surrounding cryptocurrency classifications, U.S. SEC Chair Gary Gensler has reaffirmed that he believes most cryptocurrencies are securities and that BTC is the only digital asset that fits the description of a commodity.
Meanwhile, having been denied its request to convert its Grayscale Bitcoin Trust (GBTC) into a spot-based Bitcoin exchange-traded fund (ETF), Grayscale Investments has filed a lawsuit against the SEC.
In other news, venture capital firm Three Arrows Capital (3AC) is facing more uncertainty amid reports of insolvency. Per the latest developments, a British Virgin Islands court has ordered the liquidation of Singapore-based 3AC. It is estimated that 3AC has incurred upwards of $400 million in losses due to liquidations across multiple positions.
Cryptocurrency exchange Voyager (VYGVF) has also issued a notice of default to 3AC for its failure to repay 15,250 BTC and around $350 million worth of USDC, adding to the firm’s woes.
Finally, legendary football/soccer player Cristiano Ronaldo partnered with Binance to introduce his global fanbase to Web3 and NFTs. As part of this exclusive multi-year partnership, Ronaldo and Binance will create NFTs to be sold exclusively on Binance’s NFT platform.