Crypto News: Market Meltdown, 3AC, Celsius, Job Cuts & MORE!!

[Music] Welcome to the coin bureau weekly crypto Review here are this week’s top Headlines in the crypto news Crypto market collapse btc falls below 20k eath falls below 1k and the rest of The crypto market gets wrecked too was This the bottom or is there more pain to Come Three arrows to the knee one of crypto’s Largest vcs is believed to be insolvent After its founders ghost the community Which crypto projects could this affect Celsius below zero one of crypto’s Largest lending platforms puts a pause On withdrawals after rumors of Insolvency everything you need to Know crypto job cuts coinbase lays off Nearly a fifth of its workforce as Binance and kraken continue to hire what Does this mean for the crypto market Introducing the euro stablecoin usdc Issuer circle reveals the latest Addition to its suite of centralized Stable coins why this is a much bigger Deal than you think Panama’s crypto bill The central american country is on the Cusp of becoming the second to adopt Cryptocurrency at the national level When will it happen And a closer week at last week’s top Performing cryptos and where they’re Headed next all this and more in just a

Moment [Music] Good morning afternoon or evening thank You for tuning in my name is guy and What you’re about to see is educational Content not financial advice You can find any topics you’re looking For using the timestamps in the video Timeline and now for today’s top stories Last week the bottom fell out of the Crypto market leveraged traders lost Billions of dollars while crypto holders Lost tens of billions at least on paper If you watched our recent video about The macro factors moving the crypto Market you’ll know that last week’s Crypto collapse was caused by the Federal reserve’s monthly press Conference The fed announced it would be raising Interest rates by 0.75 For the first time since 1994. This is an increase that investors Hadn’t managed to price in so the stock Market and the crypto market came Crashing down It wasn’t just the fed that moved the Markets however the central bank of Switzerland simultaneously announced That it would be raising interest rates For the first time since 2007 bringing Its key interest rate from minus 0.75 To minus 0.25 Yes you heard that right negative

Interest rates Now the european central bank also Announced that it plans on raising Interest rates for the first time in 11 Years come july though there are doubts That this will happen given that the Declaration alone is already bringing More indebted european countries to the Brink of default In any case the actions and rhetoric of Central banks around the world has many Investors wondering how much lower the Markets could go be they stocks or Crypto As i mentioned in my weekly newsletter This all depends on how long inflation Lasts or more accurately the perception Of inflation lasts If say the war in ukraine is somehow Resolved or the pandemic is suddenly Declared over by the who this could give The markets the fuel they need to stay Afloat In other words what we just saw would Probably be the bottom In the absence of such resolutions Though it’s likely that all assets will Continue to see a slow decline as Liquidity is sucked out of the financial System I happen to suspect that the crypto Market will meet its bottom because of a Catalyst that’s likely related to a Regulatory crackdown and because

Regulators don’t have the resources to Go after each crypto project Individually my bets are that the Exchanges will be the ones taking the Regulatory beatings I’ll be doing a video about where Exactly the bottom of the crypto bear Market could be later on this week so Stay tuned for that Now you could argue that a regulatory Crackdown on the crypto industry is Inevitable given the recent collapse of Cryptocurrency’s largest decentralized Stablecoin which is or rather was Terror’s ust If you watched our video about terra’s Implosion you might recall that i Predicted we had yet to see the full Extent of the damage caused by this Cryptocatastrophe It looks like that prediction is Starting to come true as three arrows Capital is reportedly insolvent As i mentioned in the introduction three Arrows capital or 3ac was one of the Largest crypto funds and was believed to Have held as much as 10 billion of Cryptocurrency at its peak As you might have guessed 3ac was one of The biggest investors in terror and 3ac Co-founder kyle davis recently confirmed That they lost no less than 200 million Dollars of their portfolio in the Implosion a portfolio which stood at

Just 3 billion In april this year 3ac was also a big investor in avalanche Whose avax coin also took a tumble Because of terror and could potentially See even more downward pressure as the Entities behind terror have yet to Offload the tens of millions in avex They hold For what it’s worth it sounds like they Won’t be selling soon Now while there was lots of speculation That 3ac had gone insolvent after Terra’s collapse the rumors didn’t Really begin to circulate until early This month when independent on-chain Analysts discovered that 3ac had begun Dumping tens of millions of dollars of Lido finance staked eth or st eth Now if you watched our video about lido Finance you’ll know that st eth makes it Possible to stake eth on ethereum’s Proof-of-stake blockchain dubbed the Beacon chain without spinning up your Own validator More importantly it makes it possible to Trade this eth freely while it accrues Interest in real time It should come as no surprise then that St eth was very popular among Institutional investors and d phi d gens Alike and let’s just say in 3ac’s case It looks like they were one and the same Thing

Now i’ll be doing an in-depth video About 3ac’s apparent collapse later this Week too so stay tuned for that as well As to which other cryptos could Potentially be affected well according To its website 3ac’s portfolio includes About every leading layer 1 Cryptocurrency and many of the top d5 Protocols I’ll leave a link to the full portfolio In the description if you’re interested These cryptos could be at a discount Soon Anyways another entity that has been Shaken by the recent crypto collapse is Of course celsius one of the largest Crypto lending borrowing and saving apps Which recently paused all withdrawals Swaps and transfers for its users As with 3ac many began to speculate that Celsius had become insolvent after Tera’s implosion this is because celsius Supported both luna and ust and had Hundreds of millions of dollars Deposited on terra’s now infamous anchor Protocol The thing is that celsius actually Managed to withdraw all of its ust from Anchor protocol before ust lost its Dollar peg and it actually doesn’t look Like celsius was hit that hard by Terra’s collapse if at all Even so this didn’t stop celsius fudd From spreading and soon focus turned

From terror to lido finance’s Aforementioned st eth token This is because celsius’s business model Essentially involves taking user funds And lending them out to individuals Institutions and select defy protocols Behind the scenes to earn yield the Majority of which is given back to its Users Naturally whenever someone deposited eth Into celsius it would turn around and Deposit some of that eth into lido Finance for st eth which it would then Use to earn additional yield Now the estimates of exactly what Percentage of celsius’s eth holdings Were in st eth vary but coindesk Recently reported that of the 1 million Eth on celsius around 70 of it had been Converted to st eth For context converting eth to st eth is A one-way trip until ethereum’s Transition from proof of work to proof Of stake at which point it will be Possible to redeem st eth for actual eth Even then it might be a few months Before st holders will be able to Withdraw Now this isn’t a problem so long as st Price continues to mirror that of eth Within a few percentage points but if st Eth starts to diverge this could become A problem for platforms like celsius if All their users start trying to withdraw

Their eth at the same time As far as i can tell this is exactly What happened and it was made worse by The fact that celsius was reportedly Borrowing millions of dollars of stable Coins against its st eth holdings in d5 Protocols like ave for additional Leverage and yield along with other Assets too Whatever arrangement celsius had going On behind the scenes it’s clear that Something broke and with celsius’s Investors refusing to bail them out many Are wondering whether they will take up Nexo’s offer to buy them out assuming They don’t get completely crushed by Regulations and lawsuits Now i must stress that there is a lot More to this story than meets the eye Which is why i’ll be doing a video about Celsius’s alleged insolvency later this Week believe me when i say it’s one you Do not want to miss In the meantime you can check out my Video about the safest way to store your Cryptocurrency because i have a feeling That celsius won’t be the last lending Platform to go cold in the coming weeks Crypto lending and borrowing apps Haven’t been the only ones feeling the Heat either crypto exchanges have been Hit surprisingly hard by the bear market And many have stopped hiring altogether In the case of coinbase it announced

That it would be laying off 18 of its Workforce with 5 000 employees this Means around 1100 will be getting the Boot ouch Coinbase ceo brian armstrong explained That we appear to be on the brink of a Recession and the company doesn’t want To run the risk of spreading itself too Thin Which makes sense Brian also revealed that coinbase had Been growing too quickly given the Circumstances and it’s safe to say that Coinbase isn’t the only crypto company That’s been in this state of Unsustainable growth Still some would say it doesn’t excuse The 180 pulled by the exchange which had Announced earlier this year that it Would be adding 2 000 people to its Workforce not freezing hiring or laying People off Earlier this month gemini made the Similarly surprising announcement that It would be cutting 10 of its workforce In preparation for crypto winter Crypto crypto.com also announced that it Would be cutting around five percent of Its workforce and blockfi announced that It would be cutting 20 of its workforce Not that surprising given that the Company was slammed with a 100 million Dollar fine earlier this year Now as per this awesome picture by the

Block crypto companies have had to fire More than 1500 employees over the last Two months with coinbase taking the Lion’s share of that figure Not everyone is firing however For starters binance ceo changpeng zhao Announced in a cheeky tweet that his Company was hiring for 2000 positions Something made possible by the fact that It hadn’t splurged hundreds of millions Of dollars on expensive advertising Like binance kraken has been cracking on With its hiring plans and has over 500 Positions open and this could rise to 520 positions if the 20 people kraken Ceo jesse powell said are trying to Throw the company under the bus are Fired On that note in that same thread jesse Seemingly confirmed that some of the Employment issues crypto companies are Currently facing are coming from the Fact that they were growing too quickly And didn’t manage to put the right People in the right positions Jesse also implied that many of the People they hired weren’t prepared to Deal with the roller coaster that is the Crypto market and if the crypto market Has been messing with your mind i Suggest checking out the video we did About how to deal with crypto stress That will be in the description As for what this all means for the

Crypto market it means that crypto Companies and crypto projects will be Forced to optimize their workflows and Workforces which will eventually result In high quality crypto products and Cryptocurrencies that will be ready to Rumble and rally during the next bull Market Speaking of new crypto products usdc Issuer circle recently announced that it Will be rolling out a euro stable coin Called eurocoin with the ticker euro c Later this month specifically the 30th Of june if you’re wondering why this is So significant well allow me to explain If you watched our video about the Assets backing stablecoins you’ll know That most of them are backed by some Form of debt usually u.s government debt This is because the stablecoin issuers Can earn a yield on reserves while Knowing that they can redeem these Reserves for dollars at any time If you watched our video about europe’s Upcoming crypto regulations you might Recall that the main reason why euro Stable coins haven’t taken off is Because the interest rates on european Government debt have been negative for Years meaning euro stable coin issuers Would actively lose money As i mentioned earlier the european Central bank is planning to raise Interest rates for the first time in

Over a decade on the 1st of july which Is literally the day after the release Of circle’s euro c stablecoin which will Of course be backed by european cash Equivalents aka european government debt As such circles euro c stablecoin is Ultimately a big bet that the european Central bank will continue to raise Interest rates into positive territory And beyond which as i also mentioned Earlier many investors are doubting What’s interesting is that circle’s blog Post announcing its eurostablecoin Specifies that the assets backing the Euro c will be held in euro-denominated Accounts by financial institutions in The united states If the european central bank does manage To raise interest rates without causing Any of its member states to default on Their debts i imagine that circle will Expand its operations into europe Especially if its upcoming crypto Regulations are rolled out without any Issues at that point circle’s euro c Stablecoin could become a de facto Digital euro in the same way that its Usdc stablecoin has become the de facto Digital dollar This begs the question of what that kind Of world could look like especially if Blackrock comes to custody all of the Assets backing the euro c stablecoin in The same way that it custodies the

Assets backing usdc I suppose we’re going to find out soon Enough you can learn more about Blackrock’s unbelievable influence using The link in the description Anyhow across the pond panama’s President unfortunately vetoed a bill That would have basically legalized Cryptocurrency in its entirety Now if you watched our video about Bitcoin adoption in latin america you’ll Know that panama was one of the Countries that was most likely to adopt Btc after el salvador This is because a panamanian congressman Has been pushing for a similar bill on His home turf though i must admit that It’s even more amazing than i remember In addition to allowing citizens to pay For goods services taxes duties and fees With btc The bill would create a legal framework For decentralized autonomous Organizations or dows Not only that but it would create a Legal framework for token offerings of All kinds be they initial coin offerings For cryptocurrencies or securities Offerings for physical resources like Gold and land President lorentino cortezo partially Vetoed the bill because he’s worried That approving it will upset the Financial action task force or fat f

Whose so-called cryptocurrency Recommendations are on track to Suffocate the crypto industry As it so happens the fat f recently Announced that it will be releasing more Details about its crypto recommendations Later this month and you can rest Assured that i’ll be unpacking those as Soon as they’re released More about the fat f in the description Anyhow the silver lining is that the Panamanian congressman who tabled the Bill vows to keep working on it until It’s approved and with a bit of luck the Next version will be more palatable for The president to sign Let’s just hope it’s not riddled with The fat f’s dystopian demands Turning to the charts we can see that Btc is looking insanely oversold no Matter how you slice it Under normal circumstances we would have Seen some kind of recovery rally by now Now as part of my research for my Upcoming video on where the bottom could Be i came across an insightful indicator On trading view called the visible range Volume profile or vrvp As the name suggests it shows you which Price points had the most trading volume In the past Logically this means that btc is likely To see some support around these levels Now i know the picture is a bit hard to

See on screen but the bounce we saw from 17k over the weekend is consistent with The small pocket of previous volume Around those levels If we fall further the vrvp suggests we Could sink as low as 12 to 14k before we See more support I’ll reiterate that this is a big if and The vrvp is just one of many ways you Can measure the potential bottom Feel free to tell me about your method In the comments section Last week’s top performing cryptos were Helium bitcoin sv cadena the brave Browser’s basic attention token and Theta network Starting with helium the hnt token is Going higher because of all the news Coming out during and shortly after the Recent helium house conference including A partnership with tyre manufacturer Goodyear and a new physical device for Helium’s peer-to-peer 5g internet If we were in a bull market this news Would have taken hnt to the moon but in A bear market it’s really nothing more Than a blip on the radar Full disclosure i hold hnt as part of my Portfolio and you can find out all about It using the link in the description Next up we have bitcoin sv which is one Of the many forks of bitcoin so let’s Leave it at that Then there’s cadena whose kda coin is

Rallying in response to the ongoing Development of the crypto project that Was made possible by the 100 million Development fund it announced in april And an additional 10 million developer Fund it announced late last month Alas kda’s long-term price action isn’t Looking pretty but all its ongoing Development leads me to believe that it Will have another chance at new all-time Highs when the bull market comes back Around and yes i will cover cadena Eventually When it comes to braves basic attention Token i couldn’t find the source of its Recent pump my best guess is the Development of scaling solutions and Privacy preserving technologies that Brave affiliates are working on It is again of no consequence because Bat has been thoroughly beaten down by The bear market then again it never Quite managed to blow up like other Cryptos did which is quite odd given how Popular the brave browser is So if you know why let me know in the Comments section down below And finally we have theta network whose Theta coin is seeing some green in Response to all the nft activity on the Theta blockchain and all the cool Features the crypto project continues to Roll out such as an api for its Decentralized video streams

It’s too bad that the bear market has Beaten the bull out of theta but i guess That gives you lots of time to learn About the project and see if it has Potential when the bulls come back Around Our most recent video about theta Network will of course be in the Description And that’s all for today’s coin bureau Weekly crypto review if you enjoyed it You know what to do hit that like button Subscribe button and bell icon too If you’re looking to maximize your gains During the bear market the coin bureau Deals page is where you should go You can find the link to that resource And many others in the description below Thank you so much for watching and i Will see you all in next week’s episode [Music] You