Bitcoin & 3AC: New drama shakes crypto industry

Bitcoin and the crypto markets are currently facing increased volatility, ie strong price fluctuations. The crash last week was followed by a couple of green days where BTC and Altcoins could rise sharply – but analysts are not yet quite clear, on the contrary. Meanwhile, after the Terra LUNA crash, the next cryptodrama is shaking the industry: the collapse of the crypto fund Three Arrows Capital (3AC). Are the dominoes falling now?

Bitcoin is going down, many investors are worried.

Photo: Panthermedia.net/Elnur

So far, the next big correction in the crypto markets has not been missed: Bitcoin (BTC) is stable above $ 20,000 and only falls below it for a short time. Ethereum (ETH), the second most valuable cryptocurrency by market value, has also recovered after its recent retreat to around $ 900 and returned above the psychologically significant $ 1,000 mark. Right now, BTC is trading at $ 20,428, ETH at $ 1,101.

Why is bitcoin falling right now?

The total crypto market value has grown by 2% in the last 24 hours, it is now at 904 billion dollars. Some assets even perform really well in the current environment: the Layer 2 scaling solution Polygon (MATIC), for example, has increased by 27% in the last 24 hours, while the blockchain game project Enjin Coin has increased by 15%. Analysts warn, however: The downturn in the crypto markets is not over yet. “I just looked at a lot of charts and yes, everything still looks bearish to me. I expect new lows this week, ”commented the pseudonymous top trader CryptoCapo.

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