Bitcoin Stable at $23k as Bankrupt Cryptolender Voyager Allows Some Fiat Withdrawals

Bitcoin is currently trading around $23ki at the time of writing after a relatively quiet last 24 hours. The largest cryptocurrency by market capitalization appears to be looking to consolidate around key resistance at $24k. Altcoins were also largely stable with a few exceptions. More on that later.

In other news, a big relief for some crypto investors as major lender Voyager has announced that USD deposits will allow users to withdraw their funds. The company is in a multibillion-dollar crisis after a recent drop in prices and customer defaults caused major liquidity and solvency problems. More on that later.

The Ethereum network may undergo a hard fork next month to complete the transition to a Proof of Stake (PoS) mining system. This is because many users believe that a true PoS system will leave little room to improve network security and scalability. Big miners understand this and are preparing to split the network and preserve some remnants of Proof of Work (PoS) consensus. It remains to be seen if the fork will actually take place and if it will actually succeed.

Turkish inflation has reached a whopping 79%, the highest in more than 24 years for the country. Several reasons are given for this sudden increase, including the deadly war in Ukraine, which has disrupted the food supply. Analysts believe that an increase in inflation automatically improves cryptocurrency adoption in a country as users seek to maintain more deflationary and limited assets.

The Government of India has frozen the assets of the major stock exchange Wazirx. $8 million in funds were frozen by authorities as a clash between the exchange and its Chinese takeovers began to pose a problem. Binance CEO Changpeng Zhao, whose company reportedly bought the Indian exchange, claimed the deal was never completed. Wazirx believes this has been done 100%. The clash is likely to result in a civil lawsuit.

Portuguese banks have also stepped in and started closing bank accounts linked to crypto exchanges. The country is known for its pro-crypto stance, but this move could pose problems for the industry.

More than 230 economists believe that the US government’s latest move to stop inflation in the country will actually result in even worse CPI figures. In a joint letter to the US Congress, the economists urged them to address systemic problems. Most of these economists are either right-wing or right-leaning. Left-leaning and liberal economists believe it will actually help improve the savings of the average American.

Bitcoin price is stable at $23k

Bitcoin is currently trading around $23k at a time when the price trend seems to be stalling.

The last 24 hours started with the Bitcoin price around $22.8k. It immediately rose above $23k and has been there for the rest of the day. Further progress did not come, but the price remained stable. Overall volatility was very low, peaking below 3%.

Bitcoin is now trading just below the major psychological hurdle around $24k. The price has been defensive since the big price drop in May. But now after a long time the cryptocurrency has risen a bit and has maintained this movement. However, the next resistance near $24k will determine the immediate outlook for the cryptocurrency. The bears are waiting for an opening and they can easily retaliate and regain control of the restive bulls at short notice.

Bitcoin’s total market capitalization was around $440 billion and its share of the crypto market was 41.23%.

Bitcoin price chart

Losing Altcoins Books

Other cryptocurrencies were broadly flat for most of the day with a few notable exceptions. Big winners were Ethereum (ETH, 2.5%), Solana (SOL, 2.5%), Avalanche (AVAX, 9.5%) and Ethereum Classic (ETC, 3.5%). AVAX is now at its highest level in 2 months after a fantastic last few weeks. However, further progress is expected to be difficult for cryptocurrency.

Avalanche price chart

In other news….

Voyager allows withdrawals in USD for users

Under pressure, cryptocurrency lender Voyager has announced that it will only allow fiat withdrawals from the company for some users at a cost of $270 million. This is a small but welcome relief for users, many of whom hold large amounts of crypto and fiat with the company.

The Company has established an automated clearinghouse transfer facility available to users. They can access it instantly and can withdraw up to $100ki fiat from the platform. However, only $270 million has been earmarked for this compensation program, and users should hurry to get as much of the failing company as possible.

On July 1, last month, the company suspended withdrawals, deposits and lending activities and has since filed for bankruptcy. The company had lent to 3 Arrows Capital (3AC), which had defaulted on a whopping $620 million.

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