Crypto Weekend ends on a horror note, as trading halts and bailouts strike the market

Market spasm causing the choke around the world.

The crypto market crash which started in May, has prolonged and entered July, causing a lot of loss of fiscal benefits for investors spread across the globe. The wash out of billions of dollars of investors’ money in the market, surely proved the volatility of the market and made the investors lose the trust in the market. The vows of the giant crypto institutions don’t seem to be going anywhere and is rather continuing to increase as the market crash keeps prevailing in the market.

The market spasm majorly caused by Terra’s Luna and bitcoins downfall has surely chocked the investors scattered across the globe. Another major influencer for the prolonging market crash was the hedge fund company Three Arrows, which also faced a lot of issues in regards to liquidation.

Crypto’s important weekend ends with Trading halt and bailout!

Two of the big crypto companies who have been affected directly by the hedge fund company are Block Fi and Voyager. Crypto Broker Voyager, went on to announce on Friday that, they were suspending the trading, deposits and withdrawal services. The other major crypto exchange, BlockFi made the headlines as it the backing of an exchanged called FTX US with the potential to be acquired. Amidst the news, the hedge fund capital Three Arrows, was ordered for liquidation by a British Virgin Islands.

Loss of $2 Trillion.

The slump of market now has gone up to an extent were, reportedly, $2 Trillion of market value has disappeared, leaving the participants uneasy heading into the long Fourth of July weekend.

In the middle of June, according to crypto investor and Bloomberg Opinion columnist Aaron Brown, “I had started to think the dominoes had stopped falling.” I don’t make any particular forecasts, but I think there will be more negative news by Tuesday morning.

Liquidity issues of the market deep rooted from 3AC’s issues.

The hedge fund company, made big bullish bets on Bitcoin and Terra’s Luna prior to the market crash. As the market crash occurred, the two main impacted commodities in the market were Luna and Bitcoin. As a result, the position that 3AC put itself into was not great. The company suffered huge losses, and liquidity pressures which actually became the root cause for the liquidity issues of the market. The industry’s excesses during the bull market of last year, when it accumulated leverage that proved harmful when the market turned, have come to be symbolized by Three Arrows.