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Voyager’s 60% share price decline will cause crypto stocks into the Red Sea

Voyager Digital’s (VYGVF) share price decline of 60% has been accompanied by a further decline in shares of its Three Arrows Capital (3AC) accredited crypto industry.

According to trade watch data, VYGVF traded down 50.84% ​​for the day before closing at $ 0.5998, down 60% during regular trading on June 22.

The sharp decline came after Voyager Digital revealed that the bankrupt Three Arrows Capital (3AC) had a combined total of 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC) worth about $ 660 million.

Voyager has offered 3AC to pay $ 25 million until Friday (June 24) and will be considered in default to pay the full amount before the loan until next Monday (June 27). The company is said to be working with lawyers on how to pursue legal action against 3AC, if the supposed venture fund is unable to repay its debt.

Alameda Research has expanded its 200 million USDC revolving loan and 15,000 BTC revolving loan to cover Voyager’s current liquidity problems. The company this week tightened its 24-hour withdrawal limit from $ 25,000 to $ 10,000.

Redditor AdLongjumping5010 commented on the r / CelciusNetwork sub-reddit that “$ 10,000 is better than $ 0 in Celsius.”

Other crypto-related stocks continued to suffer. Coinbase stock (COIN) traded down 9.71% to $ 51.91, while its shares in Bitcoin Exposed Microstrategy (MSTR), led by Michael Saylor, fell 4.50% to $ 170.91.

Crypto mining stocks suffered significant losses, while Riot Blockchain (RIOT) fell 9.63%, while Bitfarms (BITF), Hut 8 (HUT), Marathon Digital Holdings (MARA), Core Scientific (CORZ) all fell 5-7%. Piece.

Related: SBF and Alameda step in to prevent crypto crash infection

The declining prices of crypto stocks are a microcosm of the broader downward trend in the stock and crypto markets by 2022, with the benchmark S&P 500 index down by 21.6% in the bear market area and the beginning of the year. This is the first time since the 1970s, according to Bloomberg data.

Related: Binance makes US BTC trading fee-free because competitors feel the heat

Investors are often startled by the US Federal Reserve’s efforts to curb inflation this year by introducing a series of monetary policy and interest rate hikes.

Fed Chair Jerome Powell kept his cards close to his chest, but pointed out how the government body would reverse in late inflation, but that the Fed would keep up with higher debt costs, leading to a recession.

Testifying to the Senate Banking Committee on June 22, Democrat Sen. In response to John Tester’s question, Powell said, “This is certainly a possibility,” adding, “This is not our intended outcome, but it is certainly a possibility.”