$BTC After-meal condiments 📰
As this wave of market activity has progressed, it is clear to the discerning that it is aimed at the institutions that are 'sacrificed'.
Only by sending away a few of these highly leveraged institutions can the market truly clear, allowing the situation to gradually stabilize.
The iconic event marking the last round of bull-bear switching was the series of institutional liquidations in 2022, where in June of that year, Three Arrows Capital (3AC) faced a liquidity crisis due to the Luna collapse, officially ordered to liquidate by the British Virgin Islands court, which subsequently triggered a domino effect, igniting a wave of collapses throughout the industry.
A review of the 2022 'chain liquidation' landmark event
1. Three Arrows Capital
On June 27, 2022, it was officially liquidated by the court. It once managed a $18 billion crypto hedge fund and suffered huge losses due to high leverage bets on Luna and ETH derivatives, ultimately leading to insolvency. Its bankruptcy directly dragged down multiple affiliated institutions, becoming the 'trigger' of the previous bear market.
2. Celsius Network
Following Three Arrows Capital, filed for bankruptcy protection in July 2022. This crypto lending platform faced massive user withdrawals, coupled with bad debts from loans to Three Arrows Capital, leading to complete liquidity exhaustion.
3. Voyager Digital
Also filed for bankruptcy in July 2022, the $670 million loan it provided to Three Arrows Capital defaulted, becoming the last straw that broke its back.
4. FTX & Alameda Research
In November 2022, the leading exchange FTX and its affiliated trading company Alameda Research went bankrupt due to misappropriation of customer funds and insolvency, triggering the most severe trust crisis in the industry.
5. BlockFi
Filed for bankruptcy in November 2022, its business heavily relied on liquidity support from FTX, quickly falling into a payment crisis after FTX's collapse.
Current risk warning for key institutions
Now the market has once again reached a similar point, the holding risks of several focal institutions have been fully realized:
1. MicroStrategy
The price of Bitcoin has already been pressed down to its cost line. Holding 712,600 BTC, with an average cost of $76,037, the previous unrealized gains have basically been exhausted.
If it drops another $3,000, this 'Bitcoin faith benchmark' will officially be trapped.
2. Bitmine under Tom Lee
Holding 4.243 million ETH, with a cost as high as $3,849, has been stuck since the beginning.
As ETH dropped to $2,400, the unrealized loss has reached $5.92 billion, with a loss margin exceeding 36%.
3. Yili Hua's Trend Research
Holding 651,500 ETH, with a cost of $3,180, currently facing an unrealized loss of $475 million.
The most dangerous situation is having leveraged positions, with a liquidation price at $1,880, leaving only a $570 safety cushion from the current price, which could be forcibly liquidated at any time.
To be honest, do you still have confidence in the future market?
