The cryptocurrency market is facing a chilling investor sentiment. On Saturday, there was a massive drop in trading volume, which pushed the cryptocurrency market cap below $925 billion. The selloff comes after crypto exchange Celsius filed for bankruptcy due to its voluntarily insolvency. Currently, crypto exchanges struggle with a lack of liquidity and this has led to the suspension of withdrawals and other mechanisms for investors. The market leader, Bitcoin, traded above the $20,500 mark, followed by its counterpart Ethereum slightly above the $1,200 mark.
Both Bitcoin And Ethereum is currently trading a little higher. According to CoinMarket data, Bitcoin is performing at $20,655.68 with a market cap of $394.33 billion, while Ether is around $1,201.73 with a valuation of 145.88 billion.
Bitcoin dominance is almost flat at 42.56% compared to the previous day.
Bitcoin is down about 5% weekly and Ether has a weekly downside gain of around 1.5%.
The total crypto market cap of $926.32 billion is down 1.10% compared to the previous day. In terms of volume, the market is currently down 38.76% with transactions worth $55.47 billion in the last 24 hours. The total volume of DeFi currently stands at $5.33 billion, which is 9.61% of the total crypto market 24-hour volume. The volume of all stablecoins is now $50.87 billion, which is 91.71% of the total 24-hour volume of the crypto market.
In 24 hours, the top performing cryptocurrencies are – Serum is up 7.5%, Algorand is up 4.4%, Monero XMR is up 4.3%, Synthetics SN is up over 3.9%, and Zcash is up 2.9% . In contrast, the top underperforming cryptocurrencies are – Quant Plunging 9.75%, Coinvax Finance slipping over 8.5%, Thorchain Diving 7.3%, TeraClassicUSD (USTC) down 7%, and Compound down over 6%.
Among the top trending cryptocurrencies in 24 hours, Terra Classic (LUNC) is down 6.2% to $0.0001029, Celsius 4.62% at $0.7572, Bitcoin down 0.94%, Polygon (MATIC) down marginally at $0.6937, and CEEK VR down 19.9% at $0.2866.
Celsius was in a sharp rally the previous day after the company voluntarily opted to go bankrupt. Celsius halted its withdrawal in June due to heavy losses resulting from a deep depression in the crypto market due to macroeconomic uncertainties. Among the negative factors Celsius pointed to crypto exchanges was the explosion of Terra Luna (“Luna”) and its TeraUSD (UST) stablecoin (“UST”) – as it hastened the start of the “crypto winter” and An industry-wide sell-off in 2022.
As of July 13, 2022, Celsius has approximately $5.5 billion in liabilities, and an asset value of approximately $4.31 billion. Due to which there is a loss of $1.19 billion on the company’s balance sheet. But Celsius has also announced that they have enough liquidity with $167 million in cash to support operations.
Several other crypto exchanges have halted their withdrawals such as Binance, CoinFlex, Vault, and Voyager Digital among others. The sharp sell-off in the crypto market has also prompted the liquidation of hedge funds such as Three Capital Arrows (3AC).
Notably, the Celsius bankruptcy comes when the value of mining equipment is decreasing in line with a sharp drop in the price of bitcoin.
A latest Bloomberg report said industry observers had speculated that the mining business could be on sale as a way to raise cash since Celsius last month halted investor withdrawals. In addition to any bankruptcy-related complications that may now arise, the potential offloading of rigs could prove to be troublesome. Matthew Kimmel, a digital asset analyst at CoinShares, said the Celsius Mining selling machine would add to downward pressure on the already falling machine prices.
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