Bitcoin & 3AC: New drama shakes the crypto industry

Bitcoin and the crypto markets are currently facing increased volatility, that is, strong price swings. The crash last week was followed by a couple of green days, when BTC and altcoins could rise sharply – but analysts do not yet give it the all-clear, on the contrary. Meanwhile, after the Terra LUNA crash, the next crypto drama is rocking the industry: the collapse of crypto fund Three Arrows Capital (3AC). Are the dominoes falling now?

Bitcoin is going down, many investors are worried.


So far, the next big correction in the crypto markets has not been missed: Bitcoin (BTC) is stable above $20,000 and only drops below it for a short time. Ethereum (ETH), the second most valuable cryptocurrency by market cap, has also recovered from 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 capitalization has grown by 2% in the last 24 hours, it is now at $904 billion. Some assets are even performing really well in the current environment: for example, the layer 2 scaling solution Polygon (MATIC) is up 27% in the last 24 hours, while the blockchain gaming project Enjin Coin is up 15%. Analysts warn, however: the downturn in the crypto markets is not over yet. “I just looked at a bunch 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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