{"id":13003,"date":"2022-06-28T04:04:40","date_gmt":"2022-06-28T04:04:40","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/crypto-contagion-is-main-risk-to-the-market-says-analyst\/"},"modified":"2022-06-28T04:04:40","modified_gmt":"2022-06-28T04:04:40","slug":"crypto-contagion-is-main-risk-to-the-market-says-analyst","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/crypto-contagion-is-main-risk-to-the-market-says-analyst\/","title":{"rendered":"Crypto contagion is main risk to the market, says analyst"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<p dir=\"ltr\">While Bitcoin (BTC) remains perched above $20,000 amid the crypto winter, digital asset market analyst Marcus Sotiriou says the main risk for the market is the contagion linked to the crypto hedge fund Three Arrows Capital (3AC) and crypto lender Celsius Network.<\/p>\n<p dir=\"ltr\">For 3AC, today\u2019s notice of default from Voyager Digital all but confirms the demise of the hedge fund, whose problems go back to the collapse of cryptocurrency Terra Luna in May.<\/p>\n<h2>Multiple companies exposed to 3AC<\/h2>\n<p dir=\"ltr\">Crypto brokerage Voyager\u2019s exposure to 3AC is via a loan of over $675 million \u2013 in $350 million of USDC and 15,250 BTC. Three Arrows is unable to repay the loan and hence Voyager\u2019s attempt to explore legal means of getting the funds repaid.<\/p>\n<p dir=\"ltr\">And it\u2019s not just Voyager, the rot affects multiple crypto firms that have had exposure to the crypto hedge fund, whose not-so-good investment practices could see it sink with others. Sotiriou says the contagion could be deeper. This is what the crypto market currently faces.<\/p>\n<p dir=\"ltr\">\u201c<em>As every major lender has been severely impacted by the demise of Three Arrows Capital, including BlockFi, Celsius, Voyager and Genesis, it is clear that the main market-native risk to crypto is contagion<\/em>,\u201d he said in emailed comments.<\/p>\n<p dir=\"ltr\">Together, these firms could see billions of dollars worth of investments go up in flames.<\/p>\n<p dir=\"ltr\">Notably, though, FTX founder and CEO, billionaire Sam Bankman-Fried is emerging as a \u2018lender of last resort\u2019 with his multiple bailout credit facilities. SBF noted last week that the key reason to help some of these firms is to \u201cprevent contagion.\u201d But he notes some may have to be left to die.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">VCs: &#8220;we&#8217;d love to help you backstop crypto firms and provide liquidity because we care deeply about preventing market contagion&#8221;<\/p>\n<p>also VCs: &#8220;can we please do it for the one great company (after you fix it) and make a lot of money doing it, you can take the others k thx bye&#8221;<\/p>\n<p>\u2014 SBF (@SBF_FTX) <a href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1539968557844336641?ref_src=twsrc%5Etfw\">June 23, 2022<\/a><\/p>\n<\/blockquote><\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><a href=\"https:\/\/coinjournal.net\/news\/analyst-main-market-native-risk-to-crypto-is-contagion\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) While Bitcoin (BTC) remains perched above $20,000 amid the crypto winter, digital asset market analyst Marcus Sotiriou says the main risk for the market is the contagion linked to the crypto hedge fund Three Arrows Capital (3AC) and crypto lender Celsius Network. For [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":13004,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/13003"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=13003"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/13003\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/13004"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=13003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=13003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=13003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}