🧘‍♂️Watch This Bitcoin Level

Market Meditations | June 20, 2022

Dear Meditators

The Celcius network froze withdrawals about a week ago. With uncertain crypto conditions, the liquidity pressures proved to be too much and that is why withdrawals were halted. Now, Babel Finance is in the same scenario.

We begin the week with an update on important crypto events and our most recent BTC technical analysis.

Today’s Meditations: 

  • Bitcoin Technical Analysis
  • What’s Next for Babel Finance?
  • Whales Taking Control of Solend

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⏰ Top Headlines


? Rocky Roads & Stormy BT-Seas

BTC/USD

Weekly managed to close above $20,000. Significant but far from enough to affect our bearish bias in current market conditions.

Looking at the daily chart the 0.382 level ($23,000) has our attention. Should act as a key resistance and if claimed be one of the first signs of bearish momentum weakening.


⏸️ Babel Finance Goes Down 

Let’s take a closer look at Babel deciding to suspend withdrawals.

  • Babel finance suspends redemptions and withdrawals as of Friday. This is the case because of the “current situation [and] Babel facing unusual liquidity pressures.” (See the full blog post here)
  • Because of the crash in cryptocurrency prices, there is a lack of available assets ready on hand. This is why the decision was made to prevent customers from moving money out of their accounts.
  • It is important to note, that less than a month ago, Babel received a $2 billion valuation directly following an $80 million series B fundraising round. These changes can happen in the blink of an eye.
  • A rival staking platform – Finblox, also made a similar decision, now restricting withdrawals to $1500 per month.

Babel does not know when withdrawals will be allowed again, citing that they are in close communication with all parties to solve the current issue. This is now becoming the norm with multiple platforms suspending withdrawals because of the current market conditions. This is seemingly a new factor one must now account for when trusting a platform with their money – the ability to withdraw.


? Friends, Romans, Countrymen, Solend Me Your Ears!

Solend, Solana’s top ranked DeFi protocol by TVL according to DeFiLlama, recently scrambled to bring together a proposal to prevent a worst-case scenario from playing out on the Solana network.

  • The proposal was created to intercede a situation involving a whale that held 95% of the SOL in Solend’s main pool. Multiple attempts to contact the whale from various sources were never met with any response.
  • This posed a significant threat to the well-being of the protocol with larger implications to the Solana network itself if the loan reached a collateralization ratio resulting in liquidation.
  • A liquidation would have been possible if the price of SOL fell to $22.30, resulting in 20% of the collateral being sold to cover the whale’s debt obligation to the lending and borrowing platform.
  • This could have put an unmanageable strain on the Solana network and heavily impacted both SOL’s market cap and price, potentially leading to a cascade of liquidations.
  • The vote decided on enacting “special margin requirements for large whales that represent over 20% of borrows and grant emergency power to Solend Labs to temporarily take over the whale’s account so the liquidation can be executed OTC.”

With Three Arrows Capital and Celsius making headlines recently, the level of fear surrounding large players’ liquidations is palpable everywhere. 


Monday, 20 June

  • ?NFT NYC

    Industry leaders will gather together with developers, influencers and fans in New York City for debates, talks, workshops and briefings on all things non-fungible, through 20-23 June.

  • ?Tron Discussion On Stablecoins

    Justin Sun and Zack Seward come together to discuss stablecoins in the context of regulation.

Tuesday, 21 June

  • Nexo AMA

    Nexo will host an AMA featuring Antoni Trenchev and Kalin Metodiev at 5PM UTC. The focus of the event is to answer any and all questions about Nexo’s inner workings and vision for tomorrow.

Wednesday, 22 June

  • ?Semi-Annual Monetary Policy Report

    The Federal Reserve Board will submit its written report to Congress containing discussions of “the conduct of monetary policy and economic developments and prospects for the future.”

Thursday, 23 June

  • Vibrant NFT Experience

    Taking place in Rosario, Argentina from 23-24 June, the Vibrant event offers a unique experience featuring NFT art exhibitions. The inaugural edition featuring Internet Computer (ICP) ecosystem artists, aims to bring a new way of producing and perceiving art to the general public.


? Watch

? Read

  • Read the following Technical Analysis guides for more insight:
  1. Moving Averages 
  2. Fibonacci Retracement  
  3. Volume and Open Interest  

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??‍♂️✍️ Stories in this newsletter were written by Kyle F., Misael Calleja, Nick T., Max P., Kimia K., Ellen B. and Koroush AK. Graphics were produced by Ellen B.


Not financial or tax advice. The content in this newsletter is for informational purposes only. Nothing in this email is intended to serve as financial advice. We are not financial advisors. Every investment and trading move involves risk. Do your own research when making a decision. See our important security disclaimers here.

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