Crypto hedge fund Three Arrows Capital (3AC) caught the attention with an interesting sell on Friday. Accordingly, 3AC liquidated all Staked Ethereum (stETH) altcoin holdings in one of its wallets. The hedge fund on the verge of bankruptcy began selling its stETH and ETH holdings to pay off its debts and loans. However, the consequences of the liquidation of Three Arrows Capital will be serious for the crypto market. Bitcoin and altcoin markets will likely collapse again. However, with the stETH event, it is possible for the overall market to liquidate almost billions of dollars.
Three Arrows Capital continues to sell Ethereum and stETH
Three Arrows Capital traded 5500 stETH in its wallet address yesterday for 6.1 million USDT. After the transaction, there was a balance of approximately 14,118 stETH in the wallet address. However, on June 17, the hedge fund sold the remaining 14,118 stETH for approximately 13.5 million USDT in two transactions. According to Etherscan data, the company first issued 7000 stETH for 6.86 million USDT. Then, he again traded 7118 stETH for 6.79 million USDT.
It seems that 3AC is constantly draining stETH. In fact, people think Celsius is the biggest stETH damper. But this adjective actually fits 3AC. The crypto hedge fund sells stETH to every account and seed round address they have. The company has drastically reduced Ethereum and stETH in the last 2 months. Some companies, such as BlockFi, have started selling their positions in Three Arrows Capital. Also, many 3AC related companies continue to have problems with their operations. These, too, are at risk of liquidation. For example, Finblox, a CeFi company, had to pause its prize distributions due to 3AC’s volatility.
3AC could trigger a cryptocurrency crash
As it is known, Three Arrows Capital has a potential value of $18 billion. Therefore, a bankruptcy in the giant crypto hedge fund would spell disaster for the crypto markets. There are also altcoin assets such as Bitcoin, Solana, Kusama, Avalanche, Polkadot within the 3AC ecosystem. Users should also pay attention to such assets in the hedge fund. If financial restrictions rise even higher, these tokens will share the fate of stETH and ETH. Also, if this happens, it is quite possible to see massive price drops in the cryptocurrency market in general.
Altcoin stETH price drops below $1000 again
Crypto firms continue to sell their stETH altcoin holdings. As a result, the price of the coin fell below the $1000 level again today. At the time of writing, stETH price is currently trading at $1,027, down about 4% in the last 24 hours. In fact, the altcoin asset needs to be stable to the Ethereum (ETH) price. However, at the time of writing, the stETH to ETH ratio was around 0.93. This indicates that it is possible for a new Terra event to erupt.
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