This week in coins: Bitcoin and Ethereum delete winnings, 3AC files for bankruptcy

Bitcoins and Ethereum’s 30% winnings last week were short-lived, as both market leaders weakened more than 10% over the past week, and Bitcoin fell below the main support level of $ 20,000.

The world’s favorite cryptocurrency traded at just $ 19,203, and leading rival Ethereum suffered steeper losses, falling around 15% during the week to $ 1,045.

Several leading cryptocurrencies had notable losses this week, including Polygon and Near Protocol, each down 22%, to $ .47 and $ 3.30, respectively. Avalanche fell 23% to $ 16.32, Solana fell 23% to $ 32.63, and Polkadot fell 18% to $ 6.80.

Almost all top 30 cryptocurrencies reported losses of double-digit percentages except for UNUS SED LEO, TRON and Dogecoin. LEO fell 1.5% to $ 5.77, while Dogecoin also fell 1.5%, to $ 0.06719. In the meantime, TRON only down 0.69% this week to $ 0.06485.

3AC filed for bankruptcy

There was little room for optimism in this week’s news, most of which only confirmed fears that the sector would enter a recession.

More details appeared Monday insolvency of the Singapore-based crypto hedge fund Three Arrows Capital (3AC), with reports that cryptocurrency broker Voyager Digital had served 3AC with one standard alert in order not to repay any of the debt of 673 million dollars from loans of 15 250 Bitcoin and 350 million dollars in USDC.

On Wednesday, Sky News reported that 3AC was required to wind up by a court order in the British Virgin Islands (BVI), and that the management consulting company Teneo would assist in the insolvency proceedings.

Bloomberg reported Friday that 3AC had filed Chapter 15 bankruptcya move intended to protect 3AC’s US assets while the liquidation takes place in BVI.

Bitcoin’s bear race

On Monday, a report by digital asset manager Coinshares revealed that outflows for Bitcoin-specific funds last week a total of $ 453 millionroughly equal to all inflows in the last six months – and the highest dollar amount ever.

Per CoinShares’ last week’s outflow was the third largest recorded in terms of assets under management (AUM), representing 1.2% of the entire AUM of all funds tracked by CoinShares. (The worst outflows in percent, 1.6%, were recorded during the 2018 bear market.)

Also on Monday, Coinbase shares fell 9% to $ 56.88 after Goldman Sachs downgraded the company from “neutral” to “sell” and lowered the price target from $ 70 to $ 45. Coinbase recently said it would shoot 18% of the workforce in addition to to withdraw any job offer from incoming employees, but analysts said further action would be needed to halt future losses.

The same day, SEC leader Gary Gensler confirmed in an interview with CNBC the agency’s view that Bitcoin is a commoditynot a security, but refrained from extending the label to other cryptocurrencies.

in Gensler Bitcoin is an example of a cryptocurrency that should be regulated under the Commodity Futures Trading Commission (CFTC), which he has said before. The previous SEC administration also considered Ethereum a commodity.

On Wednesday, the SEC rejected Grayscales’ application for a Bitcoin Spot ETF, saying the digital asset management giant had not done enough to protect investors from “fraud and manipulative actions and practices.” The next day, Grayscale CEO Michael Sonnenshein announced on Twitter that his company is file a lawsuit against the Securities and Exchange Commission.

In total, the last three months have been so bearish for Bitcoin that the market leader posted his second worst quarterly result ever. But it’s okay for some. Bitcoin Whales, as CEO of MicroStrategy Michael Saylor and El Salvador’s authoritarian president, Nayib Bukeleis buy the dip.

Do you want to become a crypto expert? Get the best from Decrypt right to your inbox.

Get the biggest crypto news + weekly summaries and more!