Hi HODLers,
Opening my news feed and the few news outlet I usually look at I was strucked to see that most news were quite doom in the cryptoworld BUT CryptoMarkets were still holding quite well and even gaining a few percents.
In addition, the ECB surprised financial markets with a 0.5% raise and when we remember what happened following the FED's rate hikes...
Latest bad news:
This hurts as Tesla and Elon have been what helped the Bitcoin rally a year ago and showed that it could be used as Treasury. I understand that Elon needs cash after having some issues in hi Chinese operations following strict COVID lockdowns BUT he is selling 3/4 of his Bitcoins and if he could not hold them, he should have bought less.
Positive: It shows that there is liquidity in the market for this sizeable trades. Also, this is behind us so less potential Sell pressure.
Negative: Undermines the support from Elon to Bitcoin
Typical cascade effect of 3AC and Celsius debacles as they stated:
"Our current exposure to crypto providers Babel and Celsius: $48 million and $5 million respectively."
They are actively in talks with Babel to work it out but in the meantime, customers are not able to access their funds...
Interesting that this comes a few weeks after we learned that Blockchain.com lent a few hundred million dollars to 3AC! (Which were lost). I hope Blockchain.com with these cuts will be able to survive but I would not be completely surprised to see this spiral out of control.
This is a bad news for the space as it reflects poorly on all of us and gives material for law enforcement and legislators to consider us as "thieves / tax evaders...".
That's a lot for today already. I am closing the News feed.
Stay safe out there!