Crypto Domino Effect: Weekly Newsletter #005
First LUNA, then Celsius, and now Three Arrows Capital. What is happening in crypto, and why do the dominoes keep falling.
Crypto undergoes another high-volatile week as we observe a third domino piece fall since the LUNA crash. This time it’s the liquidation of a leading crypto hedge fund — days after the freezing of the crypto lender Celsius.
It is still difficult to say if this is the last obstacle before we see a trend reversal, but the good news is that Bitcoin closed its weekly candle above $20,000, preventing another downward spike at the beginning of this week.
Before we move further with today’s letter, I want to remind you that OB Capital will host a speech at Crypto Expo Asia on June 23.
“Investing During Bear Markets — How To Not Lose Your Money In Crypto” is the topic of our presentation, and I will be on stage. Follow me on Twitter for updates on the event.
Now, onto the newsletter.
Bitcoin (BTC) is currently trading at $20,490 after hitting a low of $17,664 during the weekend. The market dominance of the asset is down by -2.90% as more investors are transferring their funds to other cryptocurrencies.
At the time of writing the total weekly ROI of the whole crypto market is -3.79% with the total Mcap of crypto shredding an additional $58B in the last week.
This week Solana is the largest winner in the top ten crypto assets with +21.04% in 7D.
Crypto Hedge Fund Three Arrows Capital Considers Asset Sales
Three Arrows Capital (3AC), one of the biggest digital currency hedge funds, may be facing insolvency as a result of a $400 million liquidation caused by recent market events. The Dubai-based investment firm was liquidated by crypto lending firms and is considering a variety of options for dealing with its problems, including asset sales or being rescued by another company.
Cryptocurrency Firms in the United States Are Laying off Employees.
Coinbase and Blockfi, two of the largest cryptocurrency companies in the United States, have announced that nearly 20% of their employees will be laid off. Brian Armstrong, the CEO of Coinbase, admitted that the company grew too quickly during the bull market. Meanwhile, Binance is hiring, with CEO CZ seeing this as an opportunity to hire some of the best talents in the industry.
Bank of America Survey Shows Consumers Aren’t Done With Crypto Yet
Consumer interest in cryptocurrency is still high, according to a recent Bank of America report. According to a survey of 1000 current and potential crypto exchange users, 91% of respondents planned to buy crypto in the next six months, while 30% said they had no plans to sell any of their crypto holdings during that time.
- Celsius Is Being Investigated by Multiple States After Transactions Freeze
- NFT Platform Immutable Launches $500M Venture Fund for Web3 Games
- Dogecoin Investor Sues Elon Musk, Tesla, and SpaceX for $258 Billion
- Crypto Exchange Huobi Thailand Closing Down in July After License Revoked
- The Battle Over Bitcoin In 401(k)s Is Heating Up
- FBI Warns of Consumer Threat From ‘Significant’ Crypto Fraud on LinkedIn
- Solana DeFi Platform Votes to Control Whale Account to Avoid Liquidation ‘Chaos’
- Panamanian President Partially Vetoes Crypto Regulation Legislation
- Bitfarms Looks to Boost Liquidity With Sale of 1,500 Bitcoin, New Loan
Read our 37-page May 2022 Report by downloading the paper from here.
Alternatively, you can read some of the covered topics as separate publications from the “Other articles” section below.
One Button performance
Aggregated return of OB Capital vs. BTC and ETH
The performance of all trading strategies currently active at One Button Capital exceeded the returns from Bitcoin (BTC) and Ethereum (ETH) by +13.16% and +26.22% respectively over the last 30 days.
Top trading strategy
The three best AI strategies in the past week are identical to the previous one. Horizon leads the way with +7.01%, while Clipper is behind with +4.68% aggregated returns.
Top-performing market pairs
This week we got some really good market pairs. The best performers for our trading strategies in the last 7 days are LTC: USDC with a +21.49% return, followed closely by LTC: USDT with +19.46%. ETH: USDT strikes another week in the top three market pairs.
Here are the most recent changes on the OB Capital app:
June 11, 2022
- Trades made over a time chart for each bot
June 9, 2022
- Functionality to display excess returns over various tokens on the landing page
Thank you for having me today, and hopefully when we meet next week will discuss the upturn of the market. The past two months were rough, but sometimes short-term losses are needed for long-term success in crypto.
As I will be mainly focused on representing One Button at the crypto event the following days, you can join the conversation with other team members and OBC investors on Discord.
CEO at One Button Capital
This is not financial advice. This newsletter is strictly educational and does not provide investment advice, solicit the purchase or sale of any assets, or encourage readers to make financial decisions. Please use caution and conduct independent research.