фото показано с : zycrypto.com

Retail investors brace for more bad news after headlines revealed that a court has ordered the liquidation of the beleaguered cryptocurrency fund Three Arrows Capital. Is a deeper crypto market correction on the way?

So, uh, not sure if you’ve looked out the window at all today… but Three Arrows Capital, popularly known as 3AC, is in dire straits.

3AC has been ordered to liquidate by a court based in the British Virgin Isles (BVI), Sky News reports. According to an unnamed source familiar with the matter, the court order to liquidate the Dubai-based crypto fund was made on June 27.

Partners from Teneo Restructuring will handle the insolvency affairs, the Sky News report stated. While the details are scanty, the restructuring will likely entail disposing of whatever assets 3AC currently holds to repay creditors.

Co-founded by Su Zhu and Kyle Davies in 2012, Three Arrows Capital emerged as one of the world’s most successful crypto hedge funds in the past few years. The multi-billion-dollar establishment became prominent within the cryptosphere for promoting the so-called “supercycle” thesis, contending that Bitcoin would never again experience the same vicious meltdowns as in its early days.

Rumors of the insolvency of 3AC started swirling earlier this month as the price of just about every cryptocurrency and token plunged to 18-month lows. The insolvency narrative seemed more probable after reports emerged it allegedly failed to meet margin calls from multiple lenders due to the drawdown in the crypto market.

3AC is notably one of the largest borrowers and clients for crypto lenders. Absent bullish tailwinds, the liquidation may send shudders through the market and push the prices down even further.

Bitcoin faltered to $19,870 Wednesday amid a poor macroeconomic environment. The OG cryptocurrency had weakly recuperated to $20,037.61 at press time, down over 4.40% over the previous 24 hours. The trip below the $20K mark has once again provoked questions as to whether it might spur a fresh wave of liquidations.

The second-largest cryptocurrency by market cap, ethereum, was testing the $1,115 waters and was off over 8.87%. Other cryptocurrencies assumed various shades of red, with Cardano’s ADA, Solana, Polkadot, and Shiba Inu down over 4.78%, 11.88%, 8.82%, and 10.59% respectively. 

According to former Coinbase board member and long-time crypto investor, Tom Loverro, the bear market won’t be over in 2022 until “indifference sets in, crypto is no longer making headlines, and the tourists have left. That process will take many months.” 

Loverro believes retail discovering game-changing applications and use cases will pull crypto from its slump, further suggesting that investors should have enough cash to survive the next 30-36 months of the winter period.

Ultimately though, Loverro said “crypto will come back bigger than ever.”

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