First Mover Americas: BTC Dips; 3AC Liquidation Reportedly Ordered by BVI Court

The latest moves in crypto markets in context for June 29, 2022.

AccessTimeIconJun 29, 2022 at 2:02 p.m. UTC
Updated Jun 29, 2022 at 2:37 p.m. UTC

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

Good morning, and welcome to First Mover. I’m Lyllah Ledesma, here to take you through the latest in crypto markets, news and insights.

  • Market Moves: Bitcoin is down 5% after a report the liquidation of crypto hedge fund Three Arrows Capital was ordered by a British Virgin Islands court.

Price point

Bitcoin (BTC) has dipped below $20,000 on a report the liquidation of crypto hedge fund Three Arrows Capital (3AC) ordered by a British Virgin Islands court.

The world’s largest cryptocurrency by market capitalization was trading at around $19,700, down 5% on the day.

CoinDesk - Unknown

Bitcoin price chart over the last six hours. (TradingView)

Ether (ETH) took a larger dip, trading 8% lower over the last 24 hours. Solana’s SOL was down 11% and Avalanche’s AVAX dipped by 8%.

With uncertainty in the market rife right now, Jason Deane, analyst at Quantum Economics, said that “the slightest negative revelation is heavily amplified in such a dire economic backdrop where people consider crypto assets as risk-on trades.”

“Coupled with exchanges under pressure and [decentralized finance] platforms being stress tested to a degree only imagined by those who built them in the 'good' times, that uncertainty is not unfounded,” added Deane.

Deane said that with no clear path forward as yet, his view is this nervousness in the market will continue for “some time.” There is probably more shakeout to come, possibly from the mining sector, which he called an area worth watching closely.

In traditional markets, European stocks retreated as global sentiment remained volatile. The pan-European Stoxx 600 dropped by 1.2%.

Market moves

By Jamie Crawley

The liquidation of crypto hedge fund Three Arrows Capital (3AC) has been ordered by a British Virgin Islands (BVI) court, a person with knowledge of the situation told CoinDesk.

  • The court order was made on June 27.
  • Partners from New York-based Teneo Restructuring have been called in to handle the insolvency, the person said.
  • Three Arrows Capital, founded by Su Zhu and Kyle Davies in 2012, has suffered heavy losses in the recent sharp downturn in the crypto markets. The possibility of insolvency was reported in mid-June after it incurred at least $400 million in liquidations.
  • Crypto brokerage Voyager Digital (VOYG.TO) issued a default notice to 3AC this week after the fund failed to make required payments on loans of 15,250 bitcoins and $350 million in USDC. Voyager's shares had plunged after it disclosed its exposure to 3AC.
  • 3AC has been an active investor in the digital asset industry in recent years with investments across non-fungible tokens (NFT), decentralized finance (DeFi), layer 1 blockchain firms and crypto companies.
  • Teneo declined to comment. 3AC did not immediately respond to CoinDesk's request for comment.
  • The court order and Teneo's role was reported earlier by Sky News.

Latest headlines

Today’s newsletter was edited by Parikshit Mishra and produced by Stephen Alpher.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.

CoinDesk - Unknown

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.