{"id":2232,"date":"2022-06-17T05:33:29","date_gmt":"2022-06-17T04:33:29","guid":{"rendered":"https:\/\/tradersofcrypto.com\/news\/?p=2232"},"modified":"2022-06-17T05:33:29","modified_gmt":"2022-06-17T04:33:29","slug":"bitcoin-btc-sinks-closer-to-20k-again","status":"publish","type":"post","link":"https:\/\/tradersofcrypto.com\/news\/bitcoin-btc-sinks-closer-to-20k-again\/","title":{"rendered":"Bitcoin (BTC) Sinks Closer to $20K Again"},"content":{"rendered":"\n<p>Chaos still reigns on crypto markets, with trading again happening with a mood of extreme fear. Bitcoin (BTC) managed to recover above $21,000, but there are more expectations the price drop has not ended. Attitudes remain bearish as there may be more collaterals to liquidate. BTC traded at $20,465.05 ahead of the weekend.<\/p>\n\n\n\n<p>The latest BTC crash was caused by the buildup of significant whale wallets by several protocols. Those BTC were set aside to secure other assets, but ended up crashing both BTC and the asset price.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Will Liquidations End<\/strong><\/h3>\n\n\n\n<p>There may be <a href=\"https:\/\/tradersofcrypto.com\/news\/bitcoin-btc-extends-crash-on-defi-loan-liquidations\/\">more liquidations ahead<\/a>, affecting both BTC and ETH. One of the bigger stories of unraveling loans is the liquidation of Three Arrow Capital, or 3AC, which was caught in several large transactions on June 15.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/CommunityAlert?src=hash&amp;ref_src=twsrc%5Etfw\">#CommunityAlert<\/a> \ud83d\udea8<br><br>Over the last 36 hours there has been total of 18 liquidation transactions from the wallet believed to be 3 Arrows Capital <a href=\"https:\/\/twitter.com\/hashtag\/3AC?src=hash&amp;ref_src=twsrc%5Etfw\">#3AC<\/a> <br> <br>0x716034C25D9Fb4b38c837aFe417B7f2b9af3E9AE <br><br>A combined total of ~53,515 <a href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$ETH<\/a>, just shy of ~$60M, has been liquidated. <a href=\"https:\/\/t.co\/qFEWDdMcP8\">https:\/\/t.co\/qFEWDdMcP8<\/a><\/p>&mdash; CertiK Alert (@CertiKAlert) <a href=\"https:\/\/twitter.com\/CertiKAlert\/status\/1537053045829292032?ref_src=twsrc%5Etfw\">June 15, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Bit 3AC may have more exposure and more liquidations at ETH under $1,030 and $1,014. The fund is reportedly in talks to secure extra lending to avoid those liqudiations. The market is still watching addresses belonging to the fund to see if a lowering ETH price would lead to more liquidations. ETH sank to $1,077.24, threatening to dip to lower ranges and accelerate liquidations.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">You can monitor one of Three Arrows capital&#39;s accounts here: <a href=\"https:\/\/t.co\/7fJdOPXIq4\">https:\/\/t.co\/7fJdOPXIq4<\/a><a href=\"https:\/\/twitter.com\/hashtag\/3ac?src=hash&amp;ref_src=twsrc%5Etfw\">#3ac<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/liquidation?src=hash&amp;ref_src=twsrc%5Etfw\">#liquidation<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/ThreeArrowsCapital?src=hash&amp;ref_src=twsrc%5Etfw\">#ThreeArrowsCapital<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/crypto?src=hash&amp;ref_src=twsrc%5Etfw\">#crypto<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/CryptoMarket?src=hash&amp;ref_src=twsrc%5Etfw\">#CryptoMarket<\/a> <a href=\"https:\/\/t.co\/BNE3WFVDTG\">pic.twitter.com\/BNE3WFVDTG<\/a><\/p>&mdash; TheDaytradingGuy (@DayTradingGuy) <a href=\"https:\/\/twitter.com\/DayTradingGuy\/status\/1537132765535252482?ref_src=twsrc%5Etfw\">June 15, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><a href=\"https:\/\/tradersofcrypto.com\/news\/is-celsius-cel-insolvent-or-illiquid\/\">Celsius itself managed to top up its collateral<\/a> and protect against a BTC dip under $16,000. But 3AC may have left some positions to expire, while also using client funds to answer some margin calls. 3AC was at one point performing trades for 8BlockCapital, on the agreement of not trading the funds without permission.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">1) What happened between 3AC and us and what we know so far:<a href=\"https:\/\/twitter.com\/zhusu?ref_src=twsrc%5Etfw\">@zhusu<\/a> <a href=\"https:\/\/twitter.com\/KyleLDavies?ref_src=twsrc%5Etfw\">@KyleLDavies<\/a><\/p>&mdash; Danny (@Danny8BC) <a href=\"https:\/\/twitter.com\/Danny8BC\/status\/1537224378554806272?ref_src=twsrc%5Etfw\">June 16, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The traces of liquidations affect multiple exchanges, including FTX and the <a href=\"https:\/\/tradersofcrypto.com\/exchanges\/binance\/\">spot Binance market<\/a>.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>BTC Survives Liquidations<\/strong>\u00a0<\/h3>\n\n\n\n<p>The encouraging position is that for now, the series of liquidations has not caused a deeper cut to the BTC price. Additionally, previous big BTC whales have now sold their collaterals and the market has de-leveraged.&nbsp;<\/p>\n\n\n\n<p>A relatively new unknown wallet also appeared with 117,844 BTC, which received a large transaction and on June 16 started spending it in installments between 150 and 200 BTC.<\/p>\n\n\n\n<p>There are also signs of miners selling coins due to high production costs.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Braiins and Glassnode confirm the trend of <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> shipments to exchanges by miners.<br><br> The profitability of <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> mining is in crisis, at about 9 cents on the dollar on average. <a href=\"https:\/\/t.co\/eWo6yXFYpi\">pic.twitter.com\/eWo6yXFYpi<\/a><\/p>&mdash; Jose Qui\u00f1ones (@JoseQIN) <a href=\"https:\/\/twitter.com\/JoseQIN\/status\/1537174034823188486?ref_src=twsrc%5Etfw\">June 15, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>At one point, BTC production costs ranged between $3K and $10K depending on electricity prices. But with more aggressive investment in rigs, not all miners are breaking an easy profit and are more willing to sell and cover costs.<\/p>\n\n\n\n<p>The question for BTC is whether it would have another big capitulation event before recovery. Most indicators show BTC is historically near its lows, especially when touching the 200-day moving average line. However, worsened macro conditions and fears may mean BTC will not recover as easy. Glassnode also notes a significant sell-off, three times larger than the March 2020 capitulation.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> investors have locked in the largest USD denominated Realized Loss in history last week.<br><br>The <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> spent on-chain this week realized net losses of over $4.23B.<br><br>This eclipses all major sell-offs in 2021, and is 3x larger than March 2020.<br><br>\ud83e\uddf51\/3 <a href=\"https:\/\/t.co\/g5VLGQUrWc\">pic.twitter.com\/g5VLGQUrWc<\/a><\/p>&mdash; glassnode (@glassnode) <a href=\"https:\/\/twitter.com\/glassnode\/status\/1537474794328887297?ref_src=twsrc%5Etfw\">June 16, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>While some long-term holders are ready to wait out for better prices, there are also signs of spot selling on Binance and attempts to move to fiat positions <a href=\"https:\/\/tradersofcrypto.com\/news\/three-factors-that-weighed-down-the-crypto-market\/\">waiting for new BTC lows<\/a>. On the other hand, accumulation is still happening and whales are holding for the long term.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">JUST IN: Largest <a href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> whale has purchased an additional 927 ($20,000,000) <a href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> this month alone.<\/p>&mdash; Watcher.Guru (@WatcherGuru) <a href=\"https:\/\/twitter.com\/WatcherGuru\/status\/1537344098696253441?ref_src=twsrc%5Etfw\">June 16, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>Even with the bottom not yet in, the price recommendation based on the rainbow chart is still to buy and accumulate.&nbsp;<\/p>\n\n\n\n<p>In the short term, a drop under $20,000 may be amplified by leverage and stop-loss positions. Currently, BTC is threatening to go under its previous cycle high of $20,000, a still unprecedented event. But BTC is also in unknown territory and with a relatively high price, making it possible to not conform to charts from previous years.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Is ETH Building Another LUNA-Like Scenario<\/strong><\/h3>\n\n\n\n<p>One possibility for abusing ETH is the potential to swap it for stETH, or \u201cstaked ETH\u201d. This product, built by Lido Finance, reflects the upcoming ETH 2.0 beacon chain launch. The price of stETH is supposed to be the same as that of ETH, though it deviated in the past days and is about 5% lower.&nbsp;<\/p>\n\n\n\n<p>The problem is that stETH can be used to get an ETH loan, which can circle back and be deposited for more stETH.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">I think, stETH may continue to be discounted, but under the balance of arbitrage funds, it is not expected to deviate too much, and it is basically impossible to completely collapse like UST.<a href=\"https:\/\/twitter.com\/hashtag\/ETH?src=hash&amp;ref_src=twsrc%5Etfw\">#ETH<\/a> <a href=\"https:\/\/twitter.com\/hashtag\/stETH?src=hash&amp;ref_src=twsrc%5Etfw\">#stETH<\/a> <a href=\"https:\/\/t.co\/hFwxvWr1v9\">pic.twitter.com\/hFwxvWr1v9<\/a><\/p>&mdash; GD capital (@gd_capital) <a href=\"https:\/\/twitter.com\/gd_capital\/status\/1537251768794742784?ref_src=twsrc%5Etfw\">June 16, 2022<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p>The one positive thing is that stETH cannot go to zero, as it reflects actual ETH tokens. Once the Beacon Chain on the main net emerges, all stETH will convert to actual ETH. However, in the short term, this can create speculation and cause price disparities.\u00a0<\/p>\n\n\n\n<p>Shaking down the price of ETH may also lead to a deeper cascade effect of liquidations. This scenario is weighing down on the price of ETH, raising expectations for a dip under $1,000.&nbsp;<\/p>\n\n\n\n<p>The unraveling price of ETH means DeFi still holds $39B in notional value, returning to the pre-boom levels of February 2021. Other protocols also lost as much as 75% of their notional value as the market continues to de-leverage. The ETH market cap dominance is now down to 14.9%.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The serial liquidations of loans taken by the 3AC hedge fund led to more market panik, with BTC again close to $20K.<\/p>\n","protected":false},"author":3,"featured_media":2233,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[504,12,503,6],"class_list":["post-2232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorised","tag-3ac","tag-btc","tag-celsiu","tag-eth","entry"],"_links":{"self":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts\/2232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/comments?post=2232"}],"version-history":[{"count":0,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/posts\/2232\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/media\/2233"}],"wp:attachment":[{"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/media?parent=2232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/categories?post=2232"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradersofcrypto.com\/news\/wp-json\/wp\/v2\/tags?post=2232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}