We have some very important crypto news that you need to be aware of in the market today. We’re going to be talking about Celsius. We’re going to be talking about other crypto lenders potentially having some problems. We’re going to be talking about block FI. We’re also going to be talking about Mark Cuban as well what is he saying about the crypto market. We’ll be talking about the US federal reserve and the economy happening over there. We’re also going to do an update on Terra Luna classic and then we’re also going to talk about the crypto prices and Bitcoin prices and where can it go in the future. We have a ton of things to cover today.
This is a lot of these centralized lending platforms Celsius. We know is in trouble at the moment so they still have paused the withdrawals the swaps the transfers over on the Celsius network but there is contagion growing in the crypto space. In regards to the centralized d5 platforms, so what we are seeing here is pressure acutely on Celsius right now. Other big crypto hedge funds such as three arrows has failed to meet lender margin calls and other platforms have been caught up in this. It says right here block fire was among a clutch of firms that liquidated the singaporean based groups positions and it says here three arrows capital failed to meet demands from lenders to stomp up extra funds after its digital currency bets turned sour tipping the prominent crypto hedge fund into a crisis that comes as a credit crunch groups the crypto industry.
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It’s very interesting what is happening right now. It kind of turns out and this is just my analysis of a lot of these centralized lending platforms. They’re undertaking a lot of risky bets and you know the crypto market has been quite volatile and some of those bets that they had placed on getting some of those yields. They haven’t turned out well at the moment and a lot of them are getting called to repay debts and some of those repayments of debts. They’re not being achieved right now. There is a lot of funds regarding block fi as well. If you’ve heard of block fi it’s another centralized lending platform where you can deposit get some yields and things like that. There is a lot of focus on block fight at the moment. You can see this article from Bloomberg and Blockfi is trying to quell a lot of the fear regarding the fallout from three arrows a capital and the CEO of Blockfire. He’s over on twitter, he’s trying to quell a lot of the fud as well. There is a lot of fun regarding the solvency of some of these centralized lending platforms. How liquid are they? How well can people withdraw their money? We know right now Celsius. You cannot withdraw your money from that and there seems to be a focus on some of these other ones. There seems to be some contagion.
That is critically important to be aware of. Always remember in the crypto space, it does come with reward and risk. You can potentially make lots and lots of money in the worst-case scenario. Sometimes you can lose your money as well and that is just the nature of cryptocurrency on top of that. Mark Cuban has also added into the mix here and he says right here crypto firms sustained by cheap easy money will disappear in the crash he predicts the demise of cryptocurrency projects that don’t have valid business prospects. You can see this article. It’s mentioning Blockfi three arrows capital. It’s kind of referring to some of those centralized lending platforms that are in trouble at the moment. He’s also said some positive stuff here as well. He says the key to success is innovation, so those cryptos that can innovate can create disruptive technologies and also get mass adoption and solve some problems that are where some potential can lie in the crypto market.
I do agree with that as well. Some cryptos may struggle in the bear market, other cryptos that are very innovative are bringing out that new technology and getting that potential mass adoption that is where some gems can be found. If you do find the right crypto and that does have a lot of innovation. It does end up scaling getting adopted, which is where you potentially can make lots of money in the crypto space as well. It is a double-edged sword and there’s a bit of a Terra Luna classic update. I did see some cool news getting posted over on twitter. I want to share that with you and it does say right here someone has posted that they are a member of Terra rebels development team.
They are basically looking to code in some changes into Terra Luna classic which is going to change the chain and proposal 3568 which is the 1.2 percent burnt tax that has been coded and tested in a local dev-test environment. It needs further testing and they also have other proposals, proposal 4095 in voting and awaiting whitelisting, enable staking immediately and validate a node registration after 60 days. This is coded and awaiting testing as well. What is some good news here is it seems to be there’s some development happening on the Luna Classic chain kicking off with the transaction tax and other things that are going to help out build this ecosystem. Always remember cryptocurrency does come out to building out that ecosystem and getting that adoption and for Terra Luna classic, in particular, it all comes down to burning up the crypto, so the more burns that go through for Terra luna classic the better it will be for that cryptocurrency.
Let’s talk about the US economy. Let’s talk about the Bitcoin price and exactly what is going on right here, so we have seen some very interesting things happen. I have a look at this article. It says here day after pals’ assurance about the economic markets are worried that the fed breaks something we won’t go too much in-depth into this article. But, I just want to point out something very interesting that we did see in the crypto market so sometimes the crypto market and the prices of stocks are the prices of our cryptos.
They don’t always act rationally, so when we did have the big Fed announcement of a 75 basis point rise we actually saw a bit of an increase in the Bitcoin price. It actually went up to around 22 500 or so 22 300 may be right there. Then just recently in the last 24 hours it’s actually reversed a bit so it’s actually trended down again so again what are we seeing in the crypto market right now we are seeing a combination of a lot of fud a lot of volatility as well. There is still the sort of Damocles to some degree over the US economy. We know Jerome Powell. He’s dealing with a debt storm, so there’s a lot of debt out there in the US economy. 30 trillion dollars worth of debt inflation is high-interest rates are relatively low in regards to inflation. If you have an inflation rate of eight, realistically, it’s probably like 10. The interest rate is only 1.5 or whatever. That is still a big discrepancy, so there are still some big things the US economy needs to work through on top of that. We are probably seeing peak fear in the crypto market, but what is good to see for now anyway is that Bitcoin is bouncing off the 20k level. It hasn’t dipped too far south below 20k and it is maintaining a level of around you know 20k right here, so it hasn’t gone below 20k.
If it goes below 20k, you’re looking at a more extreme bear scenario happening in the crypto space. You can see with a full Bitcoin the rest of the crypto market has gone down as well. We did see a decrease in Bitcoin in the last 24 hours around seven percent that big volatility kicking in the other cryptos. They generally will follow suit, so they’re gonna fall like dominoes when Bitcoin goes down the rest of them generally go down. Bitcoin was definitely a big decrease though down seven percent. Ethereum is really down a lot so eight point seven percent yesterday and some of the other cryptos have gone down. So, at the moment we are experiencing a lot of fun and a lot of volatility. But again, what Mark Cuban says are those cryptos with good innovation and good potential in the future. I think that is where people are going to get well rewarded and also I think from a macroeconomic point of view. The US economy really does need to get back in shape, so I do feel the US economy is out of shape. It’s very bloated at the moment, hopefully, you can get back on track. We need the supply chains back on track. We need peace in Eastern Europe and I think that will have a good impact on the cryptocurrency market and that will push the crypto market higher because that’s a bit of a look at the crypto market for today.
This article is a transcription of a video made by Crypto ZEUS
Original video: https://youtu.be/UIkiLsCzMiI