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.

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 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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