Last week’s rise of Bitcoin and Ethereum was short-lived, as both market leaders fell by more than 10 percent during the past week, with Bitcoin dropping below the key $20,000 mark.
The largest cryptocurrency is currently trading at $19,203, while its leading rival Ethereum suffered greater losses, falling about 15 percent during the week to $1,045.
Several major cryptocurrencies recorded significant losses last week, including Polygon and Near Protocol, each dropping by 22 percent to $47 and $3.30, respectively. Avalanche fell 23 percent to $16.32, Solana 23 percent to $32.63, and Polkadot 18 percent to $6.80.
Almost every cryptocurrency in the top 30 experienced double-digit percentage losses except for Leo, Tron, and Dogecoin. Leo fell 1.5 percent to $5.77, while Dogecoin also dropped 1.5 percent to $0.06719. Meanwhile, Tron fell by 0.69 percent last week to $0.06485.
3AC Files for Bankruptcy
There was little room for optimism in the weekly news, most of which only confirmed fears that the sector is entering a recession.
On Monday, more details emerged regarding the insolvency of Singaporean crypto hedge fund Three Arrows Capital (3AC), with reports that crypto broker Voyager Digital issued a notice for 3AC’s failure to repay part of a $673 million debt from loans of 15,250 Bitcoins and $350 million in USDC.
Sky News reported on Wednesday that 3AC was ordered to liquidate by court order in the British Virgin Islands, and that management consulting firm Teneo would assist in the insolvency proceedings.
Bloomberg reported on Friday that 3AC filed for Chapter 15 bankruptcy, a move to protect the fund’s assets in the U.S. while liquidation occurs on the islands.
Bear Market
On Monday, a report from digital asset manager Coinshares revealed that outflows from Bitcoin investment products last week totaled $453 million, roughly equal to all inflows over the past six months.
