Weekly recap: crypto winter in the summer

Crypto market in numbers

The crypto market cap returned to the levels observed at the beginning of 2021. The indicator decreased by 26.6% over the week, according to CoinMarketCap. The capitalisation has fallen by more than three times compared with the maximum levels reached last November. It is also worth noting that from the previous high of $823 billion recorded at the beginning of 2018, the indicator decreased by eight times by the end of that year. Meanwhile, for most of this week, the crypto market cap stood at around $900 billion.

Trading volumes rose significantly amid new crypto sales. Between 10th and 16th June, the total volume was about $687 billion, up 53% from the previous week, when one of the year-to-date’s biggest declines in trading was recorded.

The Cryptocurrency Fear & Greed Cryptocurrency Index has hit a low since August 2019. Between 15th and 16th June, its value dropped to 7 points. By the end of the week, the index rose slightly to 9 points.

Bitcoin dominance dropped from a peak of 47.8% to 44.4% during the week. The market share of ether also saw a sharp decline from 17.5% to 14.7%. For ETH, this is the lowest level since April 2021.

Market volatility increased once again. The 30-day Bitcoin Volatility Index rose by 1.1% to 4.6% over the week. The same indicator for ether increased by 0.9% to 5.4%.

Losers of the week (11th – 17th June 2022)

Easily track gainers and losers within the Simple trade section on EXMO. Check real-time updates in the last 24 hours, week and month.

Segmentation of cryptocurrencies based on trading results
(11th -17th June 2022)

Most traded coins (10th – 16th June 2022)

Top crypto market driving factors

Overall crypto market

▼ 10.06.2022 – The consumer price index rose 8.6% in May from a year ago, exceeding the 8.3% Dow Jones estimate. This is the highest increase since December 1981.

▼ 10.06.2022 – Bloomberg: The US Securities and Exchange Commission started investigating the collapse of algorithmic stablecoin TerraUSD (UST).

▼ 10.06.2022 – In Texas, miners are reducing power consumption at the request of the local regulator due to the high load placed on the electrical grid.

▲ 10.06.2022 – Bloomberg expands its data coverage on the Bloomberg Terminal offering 40 new cryptocurrencies.

▲ 10.06.2022 – Payments giant, American Express, is reportedly going to launch its first-ever credit card that offers crypto rewards.

▼ 13.06.2022 – CoinShares: between 6th and 10th June, digital asset investment products saw steady outflows totaling $102 million. The majority of outflows were focused on the Americas, totaling $98 million.

▼ 13.06.2022 – CoinShares: between 6th and 10th June, multi-asset investment products saw $4.7 million of outflows. Year-to-date, this is the third week when a net outflow of funds was recorded.

▼ 13.06.2022 – CoinShares: between 6th and 10th June, investors steered clear of adding to altcoin positions.

▼ 13.06.2022 – Celsius has paused all withdrawals, swaps and transfers between accounts “due to extreme market conditions”.

▲ 14.06.2022 – Cumberland announced that after a period of relative calm, they are seeing the largest flows of the year through their OTC desk. In fact, this was 30% more in terms of volume, than the previous year-to-date high recorded on 13th May. Volumes were very BTC-centric, with about 75% of the total flow in Bitcoin. ETH was the majority of the remainder.

▲ 15.06.2022 – The U.S. Federal Reserve voted to raise its benchmark Federal Funds rate by 75 basis points from 1.5 to 1.75% at the June meeting of the FOMC – the biggest increase since 1994.

▼ 15.06.2022 – The Block: Three Arrows Capital faces potential insolvency after being liquidated by its lenders. According to anonymous sources, the liquidation totaled at least $400 million. Some estimate that it may increase by another $300 million.

▼ 15.06.2022 – Three Arrows Capital’s co-founder, Zhu Su, confirmed that Three Arrows Capital is struggling and assured that steps are being taken to solve them.

▲ 15.06.2022 – Brazilian Federal MP, Paulo Martins, introduced a bill that would allow Brazilians to utilise cryptocurrency as a form of payment, as well as an investment and a tool to access goods and services.

▼ 16.06.2022 – Danny Yuan, the CEO of trading firm 8 Blocks Capital, asked platforms to freeze Three Arrows Capital’s (3AC) funds. His team detected that $1 million was missing from the company’s funds at 3AC.

▼ 15.06.2022 – Coin Metrics: Q2 2022 is the first time in the history of stablecoins where the total supply decreased. Even if we exclude UST, over 10 billion has been redeemed directly from the treasuries of major issuers.

▼ 16.06.2022 – Financial Times: Three Arrows Capital has failed to meet margin calls from its lenders, including crypto lender BlockFi.

▼ 16.06.2022 – Reuters: The Texas State Securities Board has opened an investigation into troubled crypto lender Celsius, due to its freezing of operations on 13th June.

Bitcoin (BTC)

▲ 11.06.2022 – The Bitcoin network hash rate hit a new record high of 231 EH/s.

▼ 13.06.2022 – CoinShares: between 6th and 10th June, Bitcoin saw outflows totaling $57 million, bringing month-to-date outflows to $91 million.

▼ 14.06.2022 – MicroStrategy will face a margin call on a $205 million loan if Bitcoin falls further to $21,000. In March 2022, the company borrowed $205 million for a three-year loan from crypto-focused bank Silvergate to buy more BTC.

▲ 14.06.2022 – MicroStrategy CEO Michael Saylor: the company will continue to hold bitcoin despite poor market conditions. When choosing a strategy for investing in Bitcoin, the company foresaw volatility in the market. Amid the price fall of the first cryptocurrency, the “paper” loss of the analytical software provider, MicroStrategy, from holding bitcoins exceeded $1 billion.

▲ 14.06.2022 – Santiment: the number of whale transactions exceeding a value of $100,000 hit a high observed in May 2021, indicating that whales are acknowledging $22k as a major BTC level of interest.

▼ 15.06.2022 – Santiment: Bitcoin’s daily token circulation hit 498,000 on 13th June 2022 – the highest amount since 06th December 2017.

▼ 15.06.2022 – CryptoQuant: on 15th June, BTC exchange netflow hit a 3.5-year high of 59,000 BTC.

▲ 15.06.2022 – MicroStrategy refuted rumours that it had received a margin call on a $205 million bitcoin-backed loan from Silvergate Bank.

▼ 16.06.2022 – Coin Metrics: Bitcoin miners sent a record 88,000 BTC to exchanges on 15th June 2022.

Ethereum (ETH)

▲ 11.06.2022 – Ethereum developer Tim Beiko: Ethereum’s merge to PoS will take place between August and November 2022.

▼ 12.06.2022 – Ethereum core developers decided to delay the “difficulty bomb” for two months to make sure it works correctly.

▼ 13.06.2022 – CoinShares: between 6th and 10th June, Ethereum saw another week of outflows totaling $41 million, bringing total year-to-date outflows to $387 million (4.4% of Ethereum’s AUM). The size of ETH funds decreased by almost three times from $23 billion to $8.7 billion compared to an all-time high observed in November 2021.

▲▼ 13.06.2022 – Goldman Sachs has executed its first Ethereum non-deliverable forward.

Cardano (ADA)

▲ 14.06.2022 – Cardano developers announced the launch of its Ethereum Virtual Machine (EVM) sidechain alpha on the testnet. It is not specified whether EVM compatibility would be directly deployed to its mainnet.

XRP (XRP)

▲ 12.06.2022 – Novatti Group has announced the integration of its stablecoin, AUDC, into Ripple’s XRP Ledger to benefit from faster and low-cost transactions on XRPL.

Dogecoin (DOGE)

▼ 16.06.2022 – Elon Musk, SpaceX and Tesla Inc. were sued for $258 billion over claims they are part of a racketeering scheme to back the cryptocurrency Dogecoin.

Polkadot (DOT)

▲ 15.06.2022 – Decentralised oracle network, Chainlink (LINK), has integrated its Chainlink Price Feeds to Moonbeam, a major destination for multi-chain applications on Polkadot.

Tron (TRX)

▼ 12.06.2022 – Crypto analyst Res: Tron Dao Reserve bought $50 million worth of Bitcoin (BTC) and Tron to add to USDD reserves. Tron reduced annual “risk-free” yields to USDD stakers from 30% to 10.9%.

▼ 13.06.2022 – Tron’s algorithmic stablecoin, USDD, briefly lost its peg to the US dollar and dropped to $0.97.

▼ 13.06.2022 –Nansen: Oapital, one of the funds involved in capitalising off of the UST de-peg, is now actively making large transfers of USDD and other stables.

▲ 15.06.2022 – TRON DAO Reserve pulls 2.5 billion TRX from Binance to protect the USDD token peg.

▲ 16.06.2022 – TRON DAO Reserve will withdraw another three billion TRX from trading platforms and ​​DeFi lending protocols.

Chainlink (LINK)

▲ 10.06.2022 – Chainlink, a blockchain oracle platform, integrated two of its services within the Avalanche subnet.

▲ 15.06.2022 – Decentralised oracle network, Chainlink (LINK), has integrated its Chainlink Price Feeds to Moonbeam, a major destination for multi-chain applications on Polkadot.

Uniswap (UNI)

▲ 15.06.2022 – Stacey Cunningham, a former president of the New York Stock Exchange, joined Uniswap Labs as an adviser.

Stellar (XLM)

▲ 10.06.2022 – The money transfer company, MoneyGram, is launching a crypto-to-cash service on the Stellar blockchain.

NEAR (NEAR)

▲ 10.06.2022 – Mila Kunis has partnered with Liquid Comics founder, Sharad Devarajan, to launch the Web3 entertainment franchise ‘Armored Kingdom’ on the NEAR blockchain.

Neo (NEO)

▲ 15.06.2022 – The Neo development team has released the v3.3.1 network update, which includes bug fixes.

EXMO news

EXMO has delisted Maincoin (MNC). Token trading, deposits and withdrawals are no longer available.

That’s all for this week! Follow EXMO on YouTube, Twitter and Telegram to stay tuned to the main events and trends in the crypto market.