After plunging as low as $18,775 over the weekend, Bitcoin managed to rebound marginally at the start of the week.
The newfound enthusiasm shown on European stock exchanges on Monday morning is not entirely mirrored in the bitcoin market. This is most likely because the bitcoin business is grappling with more than just the recession and rising inflation worries.
The plight of cryptocurrency firms
In the most recent troubling development, Vauld, a Singapore-based bitcoin lending and trading firm, has temporarily banned withdrawals, trades, and deposits. This decision was explained by “budget difficulties.”
The startup, founded three years ago and backed by Valar Ventures, Coinbase (NASDAQ: COIN) Ventures, and Pantera Capital, had received around $27 million at the time. According to its own declarations, the corporation is suffering financial problems as a result of the market crisis, which has resulted in $198 million in withdrawals since June 12.
Vauld, the founder and CEO of Vauld, stated that the company was looking at restructuring possibilities. In India and Singapore, he allegedly engaged Kroll for financial guidance and Cyril Amarchand Mangaldas and Rajah & Tann for legal counsel.
A fresh cyber attack has dealt more damage to the crypto trust. The creators of Crema Finance, a Solana-based liquidity system, stated in a tweet that they were robbed of cryptocurrencies worth more than $8.78 million in a hack.
The developers explained in a tweet that they were working closely with several experienced security institutes and relevant organizations to track the hacker’s funds.
After Monday’s attack, the locked value placed on Crema plummeted to $3 million, down from nearly $12 million on Saturday.
The Technical Bitcoin course marks
Bitcoin moved in a limited range over the weekend, and it now appears that it is on its way back to the psychological $20,000 level.
If this barrier is broken at the daily close, the 23.6 percent Fibo retracement of $21,110 will be tested. A sustained advance over this level will pave the way for gains to the 38.2% Fibo retracement level of $23,263.
However, if the cryptocurrency continues to be constrained by this psychologically significant level, a $17,630 cycle downslide is possible at any time.