Last Updated: 11 July 2022
The bitcoin price has posted a plus of 11.59 percent for the past seven days and is currently trading at $21,437. The interesting thing is that we are notching up a hefty, plus, despite the fact that with Vauld and Voyager Digital, two major parties within the industry are in financial dire straits.
Bitcoin koers leeft op, ondanks financiële problemen bij Vauld en Voyager Digital https://t.co/RWjTwuy3Ji
— CryptoJournaal (@CryptoJournaal) July 10, 2022
What is going on?
On Monday, it was announced that Singapore-based Vauld is suspending the platform’s ability to withdraw temporarily, trade, and deposit funds due to “financial issues with key business partners.” Since June 12th, Vauld has faced a total of $197.7 million in withdrawals.
As a result, the platform’s revenue plummeted, and Vauld was forced to lay off 30 percent of its staff over the past month. Then, one day later, on Tuesday, came the news that lending platform Nexo has reached a preliminary agreement to take over Vauld. Nexo will spend the next 60 days going through Vauld’s books to come to a final decision on the acquisition.
Immediately afterward, on Wednesday, came the news that Voyager Digital had filed for bankruptcy. In response, Voyager’s shares fell 11 percent. Voyager’s problems stem from a $661 million exposure to troubled Three Arrows Capital.
All of this bad news for parties who own a lot of bitcoin follows the major problems at Celsius and Three Arrows Capital, which may go down in the coming weeks. Despite this, bitcoin has had a pretty good week in terms of price performance.
Short bitcoin ETF on the rise
In the shadow of all the market’s troubles, ProShares’ new Bitcoin Short ETF (BITI) has grown 306 percent in the past week, becoming the second-largest bitcoin ETF after the Proshares Bitcoin Strategy Futures ETF (BITO).
BITI now has a net short exposure of about 3,811 bitcoin, up from just 937 bitcoin on June 27. An increase indicates that institutional investors are currently particularly interested in investment products that speculate on a fall in the bitcoin price.