The Crypto Guardians are Bleeding
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Latest lending news:
📰 Crypto Lender Maple Finance Joins List Of Platforms Facing Liquidity Crunch Read ›
📰 Voyager Secures A $500 Million Credit Line From Bankman-Fried’s Alameda Research Read ›
📰 BlockFi Secures $250 Million Line Of Credit From FTX Amid Bear Market Read ›
📰 Crypto Lender Babel Finance Reaches Counterparty Debt Agreement Read ›
This week’s trending coins 💸
- BTC: 9.4% @ Midas.Investments
- RUNE: 18% APY @ Nexo
- USDT: 10.7% APY @ YouHodler
- ETH: 10.6% APY @ Midas.Investments
- BUSD: 10.3–12.3% APY @ CoinLoan
The big guys are bleeding
BTC/USD bulls are attempting a fight back to regain the $20k psychological region. They might have succeeded as BTC is currently trading near $21k after falling to a yearly low of $17600 on June 18th — a significant event considering this is the first time since 2020.
On the other hand, ETH bounced off the June 18 low of $880 and is currently trading above the $1k region.
It’s important to note that just 7 months ago, BTC and ETH were at their ATH of $68k and $4800, respectively.
In a publication made by Glassnode, a cryptocurrency on-chain analytics platform, the crypto guardians — miners and long-term holders are currently stressed by the present state of the market and are on the verge of capitulation.
BTC got to a low of $17,600, which coincidentally is also its estimated cost of production. Miner behaviors indicate that a capitulation phase is underway. They are under significant stress due to plummeting income and increasing production costs. As a result, Miners’ ASIC rigs have been going offline, contributing to falling hash rates.
Long-term holders have also been recipients of the stress the markets bring as they have been exiting their positions at a loss. Their losses combined totaled a stunning sum of around 178 BTC, a significant chunk of the $7 Billion realized loss in the past couple of days.
Question of the week
Is Crypto Lending Safe?
The past few weeks have been rife with news about Celsius and Three Arrows Capital (3AC) running into trouble. Celsius and 3AC happen to be big players in the crypto lending and borrowing space. The collapse of both has somehow contributed to a cascading turn of events that has placed the entire crypto space on red alert.
With the occurrence of these events, questions revolving around the safety of crypto lending are certain to weigh on people’s minds.
Here are some of the safety issues that currently plague the crypto lending space:
- Lack of insurance on crypto deposits
- Lack of regulations
- Crypto volatility
Reputable crypto lending platforms are generally built to withstand these issues. Still, sometimes, as seen with Celsius, some platforms exhibit slips and cracks, which then result in failure when enough pressure is applied.
We discuss more on the safety issues mentioned above and further provide tips that can assist you in safely navigating the world of crypto lending. Check here for more information.
Meme of the week