Hey Blurt friends, It’s a Mega Sale in the market right now!
Bitcoin just broke the $20K support level. At the moment BTC is trading at the 2017’s highest price at $19K. The last post I did on 9th May when it was at $30K, I was guessing the price might fall at $25K. After a month, on 13th June to be exact the price crashed to $22K level.
Millions of dollars has been liquidated every 24 hours since the BTC started to fall. FUDs are everywhere, specially with the Terra LUNA incident that until now is not being solved yet. There were some allegations that the founder Do Kwon cashed out $80M per month before LUNA and UST collapse, Kwon denies it, well we don’t really know until it’s proven.
Then now, it seems the crypto lenders industry starts to dominate the crypto space. The collapse of Celsius Network has a big part of this nonstop dumping. Celsius is a centralized wallet that offers their customers to deposit crypto and earn up to 18.63% APY. Sounds great and convincing right, that’s a lot higher than the bank deposit interest rate.
Celsius collapse probably due to mismanagement of the user funds. Since it is one of the world’s biggest crypto lending platform and if the issue will not be resolved, it will be bloodier.
Staked Ethereum (stETH) is a pegged to ETH’s value that is used as a collateral for borrowing ETH. As the ETH’s downfall stETH lost its peg, meaning the value of stETH is now lower the value of ETH which is supposed to be 1:1. Whenever investors withdraw ETH, Celsius would sell off its stETH.
To stabilize the issue, they need to pause transactions. If more customers will withdraw their assets, it will force Celsius to sell a bigger portion of its stETH supply then it will end up Celsius with insufficient liquidity and we both know what will happens next.
Anyways, where do you think the bottom line of the BTC will reach this week?
BLURT wasn’t able to escape the market crash this time, it’s already 70% down from the last month’s value of $0.0327.
Trade responsibly, trade at your own risk.
MUCH LOVE & GOD BLESS!
