Bitcoin Drives The Crypto Rebound

Cryptocurrencies extended gains climbing more than 3 percent overnight to a market cap of $1.08 trillion. The gains are despite lackluster trends in Wall Street as well as the Dollar’s strength reflected in a higher Dollar Index.

Market leader Bitcoin’s overnight gains stood at 7.4 percent, allowing the lead cryptocurrency to trade at $23,801.92. BTC ranged between a high of $23,877 and a low of $22,106 in the past 24 hours.

Among the top 100 cryptos, only 10th ranked Dogecoin (DOGE), 75th ranked Lido DAO (LDO), 15th ranked Shiba Inu (SHIB) and 31st ranked Flow (FLOW) have reported better overnight performance. DOGE has reportedly gained on some whale transactions.

2nd ranked Ethereum’s overnight gains were more modest at 3.5 percent. Ether traded between $1,607 and $1,517 in the past 24 hours. ETH is currently trading at $1,595.

Contrasting the weekly performance, Ethereum gained 53 percent whereas Bitcoin moved up only 24 percent.

3rd ranked Tether (USDT) traded between $1.00 and $0.9999 in the past 24 hours.

4th ranked USDCoin (USDC) traded between $1.00 and $0.9994 in the past 24 hours.

5th ranked BNB (BNB) gained a little more than 2 percent in the past 24 hours and more than 22 percent in the past week.

6th ranked XRP (XRP) gained more than 3 percent overnight.

Cardano (ADA) jumped one notch with a 5 percent overnight rally, relegating BinanceUSD (BUSD) to the 8th position among all cryptocurrencies. BUSD traded between $1.00 and $0.9983 in the past 24 hours.

9th ranked Solana (SOL) missed the rally and shed more than 2 percent in the past 24 hours. However, among the top 10 cryptos, Solana’s weekly gain of 40 percent ranks the second, behind Ethereum’s gain of 53 percent.

79th ranked Arweave (AR), 24th ranked Ethereum Classic (ETC) and 85th ranked Compound (COMP), have shed more than 4 percent overnight despite the broad-based rally in the market.

Meanwhile the crypto lending platform Celsius which filed for bankruptcy on July 13 has declared a recovery plan wherein it has revealed its intentions to use Bitcoin minted by mining operations to help fund mining operations and grow Bitcoin holdings. The recovery plan also shows that customers would be provided with the option, at the customer’s election, to recover either cash or remain “long” crypto.

The legal outcome of the bankruptcy proceedings involving Celsius, the lender which has reported a $1.2 billion deficit in its Balance Sheet, would be keenly watched by the crypto world. The massive turbulence in the crypto world also rocked crypto broker Voyager Digital, hedge fund Three Arrows Capital as well as various other crypto market entities.

A legal issue critical to the outcome of the case is whether the crypto assets in Celsius’ possession are the property of the estate. Also coming up for legal scrutiny would be the status of crypto assets held under the Custody vs. Earn program as well as the crypto assets transferred to Celsius to collateralize institutional and retail loans.

Whether customers are entitled to the return of crypto in-kind, the date with reference to which the crypto claim would be determined (e.g., the petition date, effective date or distribution date), the exact meaning of un-impairing a crypto claim or paying a crypto claim in full are all questions that would have to be thoroughly examined from the legal point of view.

The other points of legal review include, which of the Celsius entities the customers have claims against, and whether the retail and institutional borrowers have a setoff right where they (a) borrowed cash, stablecoins, or other crypto from Celsius and (b) transferred crypto to Celsius. Also pertinent is the question whether Celsius can recover customer withdrawals or loan liquidations completed in the 90 days before filing as preferences.

Meanwhile Skybridge capital has announced a temporary halt to withdrawals from its Legion Strategies Fund citing crypto exposure. The move was confirmed by founder Anthony Scaramucci.

Despite the bankruptcy tantrums, the momentum in the crypto market is continuing amidst concerns whether the recent rally signifies a bull market or a bull trap.

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