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Market Summary: Tesla, Saudi Arabia's cryptocurrency holdings suffer nearly 50% loss, Celsius' future uncertain, rumors circulating online about MakerDAO dumping?

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Market Summary: Tesla, Saudi Arabia

The cryptocurrency market may experience further decline due to factors such as the record-high May CPI data in the United States and Celsius temporarily suspending withdrawals. This article compiles relevant information on the matter.

Market Data

As of the deadline, BTC and ETH have dropped by 14% and 18% in the past 24 hours, respectively. ETH has fallen below the "buy the dip" price frequently mentioned by BitMEX founder Arthur Hayes this year, while BTC still has a 15% drop pending. Other data includes:

  • The total market value of cryptocurrencies has dropped below 1 trillion USD, returning to January 2021 levels.
  • The top ten market capitalizations are led by SOL -17.51% and DOGE -17.99%.
  • Dogecoin has dropped by 92% since Elon Musk's appearance on "Saturday Night Live."
  • Due to higher drops in competing coins, BTC's dominance in the market continues to rise to 47.79%.
  • USDD briefly unpegged by nearly 3%, TRON DAO announced injecting 700 million USDC to maintain the peg, and another 100 million USD to buy TRX -18%.

Tesla, MicroStrategy, El Salvador Below Cost

The statistics are as follows:

  • Tesla -24%: Holds 43,200 BTC, with an average cost of around $31,250.
  • MicroStrategy -21.56%: Holds 129,218 BTC, with an average cost of around $30,700.
  • El Salvador -46.2%: Holds 2,301 BTC, with an average cost of around $44,993.

MicroStrategy's last BTC purchase was in April this year, and in May, they firmly stated they would not sell any BTC. CEO Michael Saylor stated after the market crash, "We believe in Bitcoin." El Salvador's President Nayib Bukele, who experienced the deepest drop and frequently emphasized buying the dip, has not made any comments.

MakerDAO Dumping?

Ethereum developer mariano.eth first pointed out that one of MakerDAO's Vaults sold 65,104 ETH in one go on Uniswap, then sold 27,946.97 ETH at 4 p.m. This large ETH holder of ETH-A Vault #22025 was not liquidated but reduced leverage to avoid liquidation. After the two operations, the liquidation ratio decreased from 164.01% to 369%, and ETH needs to reach 502.85 to be liquidated.

Of interest is the large sell order below the market price at an average of 1,155, but this is not related to MakerDAO protocol funds.

The MakerDAO Vault is a core tool for users to deposit collateral, overcollateralize, and generate the stablecoin Dai. Any user can create a Vault and customize repayment cycles based on their own pace and needs, without minimum repayment amounts or credit records required by centralized financial institutions. The generated Dai is burned after repayment.

The two large ETH sell-offs from the Vault are unrelated to MakerDAO protocol funds. The Maker Foundation announced its dissolution last year and transferred development funds to MakerDAO.

Celsius Follow-Up

Celsius announced the suspension of withdrawals, exchanges, and internal transfers on 6/13. The platform and founder Alex Mashinsky remained silent after the announcements and retweets. The community mostly compares this event to the Mt. Gox exchange bankruptcy. Venture capital firm Pantera also criticized Celsius' Ponzi scheme mechanism and lack of transparency in an article.

Frighteningly, Mt. Gox declared bankruptcy in February 2014, and it took nearly three years for Bitcoin to recover to around $800 in December 2016. Lending platforms BlockFi and Nexo, with similar characteristics, have also issued statements:

  • Reuters anonymous source: BlockFi, after being fined a record $100 million, has hired legal and lobbying firms to form a policy team.
  • BlockFi CEO Zac Prince: All products and services are operating normally. The platform does not hold stETH, and they cleared GBTC in the third quarter of last year.
  • Nexo: All products and services are operating normally. Nexo attempted to assist Celsius on 6/12 but was rejected. They plan to make an offer to acquire all remaining eligible assets from Celsius.
  • The Block Research VP Larry Cermak: Publicize all of Celsius' wallets, which still hold $1.5 billion in assets.

The Tide Recedes: Zhu Su Introduces Only BTC

Zhu Su, co-founder of Three Arrows Capital, often heavily promoted Layer 1 public chains outside of Ethereum during the bull market, sparking community criticism. His Twitter bio was filled with various non-ETH mainstream public chains to show support. Now, only #BTC remains.

Recently, he began retweeting analyses refuting the decoupling of stETH and ETH. Why? Because Three Arrows Capital is an investor in Lido Finance and one of the seven major holders of stETH, so he has to promote it.

Generally, the prices of stETH and ETH are determined by the free market, and most objective analyses, including Cobie's, admit that the direction cannot be predicted.