Major cryptocurrencies crash as the crypto market cap falls below $1T: bitcoin drops 15%+ to ~$22K, ether drops 16%+ to ~$1.2K, and Solana drops 7%+ to ~$28
(Any views expressed below are the personal views of the author … Mitchell Clark / The Verge : BlockFi and Crypto.com lay off hundreds of staff as coins slump Dylan LeClair / Bitcoin Magazine : Celsius Halts Bitcoin Withdrawals: What Went Wrong? Timothy B. Lee / Ars Technica : Cryptocurrency plunges as crypto “bank” Celsius suspends withdrawals Tweets: Zac Prince / @blockfizac : This morning we announced that after taking significant time to plan and consider, we are reducing our headcount by roughly 20%. This is not a decision we take lightly and is one that brings us great sadness. @mikeburgersburg : 🚨 Celsius Network has 17,919 $WBTC leveraged in Maker protocol. This position faces liquidation at $22,584/$BTC. $278 mil $DAI debt, making it the largest individual debt position on the protocol. https://twitter.com/... Brad Garlinghouse / @bgarlinghouse : Days like today are never what you hope to see, esp. in an industry w/ as much incredible talent as crypto. If you recently joined the industry and haven't seen a downturn like this, know that this too shall pass (advice from someone who's seen a few downturns over the years). @lawmaster : In the interest of transparency, I am releasing my database of all wallets that I believe belong to Celsius. Currently, there is still roughly $1.5billion sitting on them. Also please keep in mind that on-chain labeling is not an exact science. I could have made some mistakes https://twitter.com/... @nexo : Nexo is in а solid liquidity and equity position to readily acquire any remaining qualifying assets of Celsius, mainly their collateralized loan portfolio. We are putting together an offer to Celsius to that accord and will communicate it publicly. 5/ Jon Schwarz / @schwarz : If you bought $1,000 of bitcoin the day Matt Damon's “Fortune favors the brave!” commercial came out, it would now be worth $375 https://twitter.com/... Dee Ze / @deezefi : losers and bigger losers 🥴 https://twitter.com/... @kris : Lot's of questions and speculation flying around regarding what https://crypto.com/ is doing during the market downturn. My thoughts below 🧵 @jackniewold : THE CELSIUS BLOWUP, EXPLAINED. Huge sectors of crypto are imploding, and crypto unicorns might be coming down with it. Luna was first, but now $10b giant Celsius is facing insolvency and even bankruptcy. Let's dive in: Michael Saylor / @saylor : NewProfilePic https://twitter.com/... Aaron Levie / @levie : I refuse to believe Matt Damon was wrong about investing advice. @kevinsekniqi : All Avalanche on-chain performance and reliability metrics have remained very high despite all the market turbulence. This includes all subnets as well. Very thankful for this. @kadhim : Just 8 months ago Canada's 2nd largest pension fund CDPQ and Westcap were touting the due diligence they had done before investing in Celsius “We are very careful . . . our DD process is very serious” Now Celsius has stopped withdrawals, bringing the crypto markets down with it https://twitter.com/... Tracy Alloway / @tracyalloway : Turns out avocados were the real inflation hedge all along. https://twitter.com/... Zac Prince / @blockfizac : All products and services @BlockFi continue to operate normally, including loans, interest earning, trading, credit card and deposits / withdrawals. We have zero stETH exposure and exited the principal positions we had in GBTC last fall. @sassal0x : https://twitter.com/... Ryan Sξan Adams / @ryansadams : Celsius isn't DeFi. @tether_to : Celsius Feels Impact of Market Volatility, Tether Reserves Hold Strong https://tether.to/... @cryptodomf : A year or so ago I had some $BTC and $ETH in Celsius as I saw it as way to earn yield on those coins I changed my plan to all-in on $ADA and $ERG and everything is now self-custodial Bear market is exposing weakness especially in centralised systems 👀 https://twitter.com/... Nicholas Weaver / @ncweaver : Microstrategy is just the tip of the iceberg at $200M. The big one is the miners. Over the past year power bills were probably ~$10B+. And I suspect most miners borrowed against the Bitcoin rather than sell it (because the market is too thin). @zebulgar : maybe now 25 year olds will finally build things in the real world now rather than trading around jpgs of donkeys @riccardotrezzi : Can anyone tell this guy that “hope is not a strategy”? (He's down.. ehm.. 1bn US$ on his $BTC position. What-a-legend! Source: https://www.coindesk.com/...) https://twitter.com/... Michael Saylor⚡️ / @saylor : In #Bitcoin We Trust. Raoul Pal / @raoulgmi : Remember December 2018? This is exactly what it felt like. Rising rates, oil at the highs, rising dollar, rising inflation, QT and markets breaking everywhere. Then the economy rolled over... @alex : BAYC floor under $100k USD, though the drop in ETH is lower Reuben Wu / @reuben_wu : gmorning https://twitter.com/... @richard_normal : im watching a popular crypto guy on yt right now and hes saying stuff like “why are we worried about the price of bitcoin? you will never find peace in money. i encourage you to look to christ for that.” Mike Daodas / @mdudas : global crypto market cap back to $1 trillion in aggregate, an absolute incredible long term buy opportunity in near term, however, hard to recommend anything specific, feels like max pain still ahead @thehowie : “Meanwhile, a crypto lending company called Celsius has paused withdrawals for its customers, sparking fears of contagion into the broader market.” Decentralized finance, except when a bank run happens and someone else's risk becomes your own. https://www.cnbc.com/... Alex Kantrowitz / @kantrowitz : Bitcoin is down 65% from November. The institutional money has to be getting out. Where's the bottom? Nelson Minar / @nelson : The Bitcoin headlines today are hilarious. “Bitcoin falls below $25,000”. Twenty minutes later, “Bitcoin below $24,000”. It's at $22,836 now but don't worry, the knives will stop falling eventually. Maybe? @0x_capital : A moment of silence. gm https://twitter.com/... Ben Sandofsky / @sandofsky : On October 28, 2021, Matt Damon said, “Fortune Favors the Brave.” If you went out and bought a leading cryptocurrency, today you're down 73% https://twitter.com/... @evan_ss6 : Drawdowns from ATH: $ES: 21.5% $NQ: 32% $BTC: 66.5% $ETH: 75.2% $SOL: 89.7% $AVAX: 89.9% $LUNA: 100% @larryjamieson_ : The vibes are off - sell it all, today fr fr https://twitter.com/... @pwnallthethings : Who could have guessed that borrowing billions against magic inflation-hedging assets that can only go up would eventually lead to a big fiscal implosion when the magic assets turn out to not be inflation-hedging and stop going up @thepacketrat : Oh https://twitter.com/...
Bloomberg
Context & Ripple Effects
The selloff follows Bitcoin’s fall to around $31,000 in May as investors moved away from riskier assets, then accelerated in the previous day’s broad crypto decline. The latest move takes the pressure beyond token prices and into the lenders built around crypto collateral.
Celsius has paused customer withdrawals while its Maker position, backed by 17,919 WBTC, faces liquidation risk around the reported Bitcoin level. BlockFi says its products remain operational, even as it cuts roughly 20% of its staff; Crypto.com is also laying off hundreds.
First-order effects
Celsius customers lose access to withdrawals while the platform’s leveraged Maker collateral faces heightened liquidation exposure.
BlockFi and Crypto.com reduce payroll as the market slump forces crypto lenders to preserve capital, while BlockFi seeks to distinguish its operating status from Celsius’s freeze.
Second-order effects
Nexo’s proposed acquisition of qualifying Celsius assets puts distressed crypto-lending collateral into play, with Celsius’s loan portfolio becoming a potential consolidation target.
Tether’s statement that its reserves remain strong shows stablecoin issuers being drawn into confidence management as lender stress spreads across the market.
Third-order effects
If withdrawal suspensions and collateral liquidations recur during price shocks, crypto lending will increasingly be judged on liquidity management and collateral resilience rather than token-market growth alone.
The episode points to a more concentrated lending market, where firms able to keep services running can acquire or outlast weaker platforms under stress.
The trend: Crypto’s legitimacy gap is being tested as falling token prices expose the liquidity and collateral risks embedded in centralized lending platforms.
This morning we announced that after taking significant time to plan and consider, we are reducing our headcount by roughly 20%. This is not a decision we take lightly and is one that brings us great sadness.
🚨 Celsius Network has 17,919 $WBTC leveraged in Maker protocol. This position faces liquidation at $22,584/$BTC. $278 mil $DAI debt, making it the largest individual debt position on the protocol. https://twitter.com/...
Days like today are never what you hope to see, esp. in an industry w/ as much incredible talent as crypto. If you recently joined the industry and haven't seen a downturn like this, know that this too shall pass (advice from someone who's seen a few downturns over the years).
In the interest of transparency, I am releasing my database of all wallets that I believe belong to Celsius. Currently, there is still roughly $1.5billion sitting on them. Also please keep in mind that on-chain labeling is not an exact science. I could have made some mistakes htt…
Nexo is in а solid liquidity and equity position to readily acquire any remaining qualifying assets of Celsius, mainly their collateralized loan portfolio. We are putting together an offer to Celsius to that accord and will communicate it publicly. 5/
If you bought $1,000 of bitcoin the day Matt Damon's “Fortune favors the brave!” commercial came out, it would now be worth $375 https://twitter.com/...
THE CELSIUS BLOWUP, EXPLAINED. Huge sectors of crypto are imploding, and crypto unicorns might be coming down with it. Luna was first, but now $10b giant Celsius is facing insolvency and even bankruptcy. Let's dive in:
All Avalanche on-chain performance and reliability metrics have remained very high despite all the market turbulence. This includes all subnets as well. Very thankful for this.
Just 8 months ago Canada's 2nd largest pension fund CDPQ and Westcap were touting the due diligence they had done before investing in Celsius “We are very careful . . . our DD process is very serious” Now Celsius has stopped withdrawals, bringing the crypto markets down with it h…
All products and services @BlockFi continue to operate normally, including loans, interest earning, trading, credit card and deposits / withdrawals. We have zero stETH exposure and exited the principal positions we had in GBTC last fall.
MicroStrategy's CFO explained on an earnings call in May that, if bitcoin were to fall below $21,000, it would be faced with what's called a “margin call,” where it's effectively forced to cough up more bitcoin as collateral for the loan. https://seekingalpha.com/... https://twit…
A year or so ago I had some $BTC and $ETH in Celsius as I saw it as way to earn yield on those coins I changed my plan to all-in on $ADA and $ERG and everything is now self-custodial Bear market is exposing weakness especially in centralised systems 👀 https://twitter.com/...
Microstrategy is just the tip of the iceberg at $200M. The big one is the miners. Over the past year power bills were probably ~$10B+. And I suspect most miners borrowed against the Bitcoin rather than sell it (because the market is too thin).
Can anyone tell this guy that “hope is not a strategy”? (He's down.. ehm.. 1bn US$ on his $BTC position. What-a-legend! Source: https://www.coindesk.com/...) https://twitter.com/...
Remember December 2018? This is exactly what it felt like. Rising rates, oil at the highs, rising dollar, rising inflation, QT and markets breaking everywhere. Then the economy rolled over...
im watching a popular crypto guy on yt right now and hes saying stuff like “why are we worried about the price of bitcoin? you will never find peace in money. i encourage you to look to christ for that.”
global crypto market cap back to $1 trillion in aggregate, an absolute incredible long term buy opportunity in near term, however, hard to recommend anything specific, feels like max pain still ahead
Of all the maxis I know and follow (including myself), none mentioned Celsius ever, as far as I can recall I'd never heard of it until today But yes, sure: 1. not your keys not your coins 2. 20% ROI on debt always implies large default risk https://twitter.com/...
“Meanwhile, a crypto lending company called Celsius has paused withdrawals for its customers, sparking fears of contagion into the broader market.” Decentralized finance, except when a bank run happens and someone else's risk becomes your own. https://www.cnbc.com/...
The Bitcoin headlines today are hilarious. “Bitcoin falls below $25,000”. Twenty minutes later, “Bitcoin below $24,000”. It's at $22,836 now but don't worry, the knives will stop falling eventually. Maybe?
On October 28, 2021, Matt Damon said, “Fortune Favors the Brave.” If you went out and bought a leading cryptocurrency, today you're down 73% https://twitter.com/...
Who could have guessed that borrowing billions against magic inflation-hedging assets that can only go up would eventually lead to a big fiscal implosion when the magic assets turn out to not be inflation-hedging and stop going up
When a Ponzi scheme is going to collapse, everyone thinks they can run to the exit. Most are wrong. Celsius was always a ponzi scheme. Well.... OK, it just invested in Ponzi schemes in an entire space that is a self-assembled Ponzi scheme. https://www.ft.com/...
“Celsius last year raised $400mn in an equity funding round led by Caisse de dépôt et placement du Québec, Canada's second-largest pension fund” On the bright side, the scam exit liquidity was from the pension of mostly government employees. https://www.ft.com/...
Technical issues that only seem to occur when markets are crashing and the only people that can comment on the tweet are unironically begging for market manipulation by blocking people from liquidating their BTC lol Please don't ever invest in anything crypto. https://twitter.com…
Top performing tokens of the last 24 hours (among the 100 most valuable projects / firms with market cap) are all just stablecoins. https://twitter.com/...
It's like the March 2020 macro crash, but with a side of 2018 ICO unwind, 2014 scandals and bankruptcies, and new real regulatory risks. https://twitter.com/...
bitcoin now up just 20 percent from 2017 highs. it's sad , hilarious and so stupid how much time people have devoted to talking about the price and yet here we are