Bitcoin moved above $20,000 amid negative factors that have dragged the cryptocurrency down in recent weeks.
The bitcoin price is down 0.92% this morning (June 30) at $20,100.65.
Bitcoin’s negative performance came after the Dow closed up a scant 82 basis points on Wednesday, while Wall Street’s performance in the first half of 2022 was considered quite poor.
- The Dow Jones Industrial Average rose 82.32 points, or 0.27%, to close at 31,029.31 points.
- The S&P 500 was down 2.72 points, or 0.07%, at 3,818.83 points.
- The Nasdaq fell 3.65 points, or 0.03%, to close at 11,177.89.
Investors are concerned that the Federal Reserve’s accelerated rate hikes and balance sheet reductions are straining liquidity in the markets. This has led to the U.S. economy facing recession after contracting 1.6% in the first quarter of 2022.
Bitcoin has also been affected by Celsius Networks, one of the largest cryptocurrency lending platforms in the world. The company said it will suspend withdrawals and transfers between all accounts temporarily because the market is experiencing strong volatility.
Three Arrows Capital (3AC), a Singapore-based hedge fund specializing in cryptocurrencies, has defaulted on more than $670 million worth of loans.
Voyager Digital, a digital asset broker, confirmed that 3AC was unable to repay a $350 million loan in USD Coin (USDC), a stable coin pegged to the U.S. dollar, and a bitcoin loan of 15,250 BTC, now worth about $323 million.
Currently, the total value of the crypto market is $950 billion. This is down from the peak of $3 trillion in November 2021.
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Thursday, June 30, 2022