VYGVF SHARP DROP OF 60% DURING TRADING HOURS
A 60% decline in Voyager Digital's (VYGVF) share price since it disclosed its exposure to Three Arrows Capital (3AC) is accompanied by a further decline in the crypto industry's stock.
According to data from a trade view, VYGVF dropped to 60% during normal trading hours on June 22 before closing at $ 0.5998 to mark a 50.84% decline per day.
The sharp decline following Voyager Digital reveals that Three Arrows Capital (3AC) owes the company 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) worth about $ 660 million in total.
Voyager has given 3AC until Friday (June 24) to pay $ 25 million, and until next Monday (June 27) to pay off all of this before the loan will be deemed to be in error. The company has also indicated that it is working with lawyers on how to take legal action against 3AC, if the so-called venture fund is unable to repay its debt.
Alameda research has expanded USDC $ 200 million loan and 15,000 BTC loans around to address Voyager’s current problems. The company also tightened the 24-hour withdrawal limit this week from $ 25,000 to $ 10,000.
"$ 10,000 is better than $ 0 in Celsius," noted Redditor AdLongjumping5010 in the r / CelciusNetwork sub-Reddit in response.
Some crypto-related shares continue to suffer. Coinbase stock (COIN) suffered a 9.71% immersion at $ 51.91, while BTC's most outspoken MicroStrategy (MSTR) led by Michael Saylor saw its shares fall 4.50% to $ 170.91.
Shares of Crypto mines also saw significant damage, with Riot Blockchain (RIOT) collapsing 9.63%, while Bitfarms (BITF), Hut 8 (HUT), Marathon Digital Holdings (MARA), Core Scientific (CORZ) has all dropped by about 5-7%.
Declining prices for crypto shares are simply the microcosm of the broader decline in the stock and crypto markets by 2022, with the benchmark S&P 500 Index in the bear market area and down 21.6% since the beginning of the year. This is the first time this has happened since 1970, according to Bloomberg data.
Investors have often been distracted by U.S. monetary policy. Federal Reserve and efforts to curb inflation this year by introducing a series of interest rates.
Fed Chairman Jerome Powell has put his cards next to his chest about how the state agency will fall in recent currency, however, but suggested that as the Fed continues to raise borrowing costs, it is likely to look into the recession.
Witnessing in the Senate Banking Committee on June 22, Powell said "It is indeed possible," in response to a question from Democrat Sen. John Tester, added, "It's not our intended outcome, but it certainly is possible."