In general, when looking at the cryptocurrency market, it is clear that the majority of the cryptocurrency market has fallen over the past two weeks.
This drop accelerated over the past week, erasing $300 billion from the market's total value entirely.
It is worth noting that the crypto market is not the only one suffering from devaluation and prices, as Wall Street markets are also suffering, with the S&P 500 index trading at a loss of 4.25% since last week.
The Dow Jones Industrial Average (DJIA) is down 4% over the same period, while the Nasdaq Composite is down just under 2%.
Cryptocurrencies are known to be a risky asset, and as such, it is no wonder that investors get rid of them first, causing financial distress in the entire market.
And the Ethereum currency, of course, is not an exception and is also not immune from declines, especially with the decline of Bitcoin, the king of cryptocurrencies, to become limited options in front of the rest of the alternative encrypted digital currencies, which only have to keep pace with the direction of its master.
The entry of the Celsius company into adversity and problems:
It is important to mention here that everything that is mentioned here or on any other crypto site on the topic of “Celsius” is just analyzes and speculation, as the mysteries and secrets of the real problem that the “Celsius” company suffers from have not yet been revealed, meaning that there is no official information from the company about The current state of her affairs.
The first signs of major distress emerged when the platform halted all withdrawals, transfers and swaps, citing harsh market conditions.
This basically resulted in locking up users' funds and preventing access to their funds.
Celsius Network, despite being centralized, is also one of the largest participants in the DeFi markets.
In short, Celsius is a lending platform that allows users to deposit cryptocurrencies and earn a return from them.
In return, money is used to generate higher returns through whatever means they find suitable.
Celsius is suspected of being a huge stakeholder of stETH - staked ETH on the Lido platform.
stETH is currently trading at a 4% discount on Ethereum, and coupled with a huge withdrawal request, this may have added to the massive selling pressure that Ethereum has experienced over the past week.
Also, the cryptocurrency Ethereum started to fall more dangerously than the rest of the market exactly when the rumors about “Celsius” started spreading.
The Suffering of the Three Arrows Capital Crypto Hedge Fund:
As if all of the above wasn't enough to make things bad for Ethereum.
Three Arrows Capital, one of the largest cryptocurrency hedge funds with a massive amount of assets under management, is experiencing a critical period in its career.
A few days ago, several rumors emerged that the fund is facing massive liquidations and is presumed to be insolvent.
This is confirmed suspiciously by Zhu Su, one of the founders of the fund, who said:
We are in the process of communicating with the concerned parties and are fully committed to working to resolve this issue.
Yesterday, the company's other co-founder, Kyle Davis, stated:
The company is exploring various options to stay afloat, some of which include selling assets.
The “Three Arrows Capital” fund is supposed to contain a lot of Ethereum.
Multiple reports indicated that the company has liquidated millions of Ethereum in the past few days alone in an effort to pay off existing loans and prevent further liquidations.
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