Also today, Celsius customers are tearing their hair out after the crypto lender offered an update that told them nothing new.
BTC suddenly plunged below $20,000 on Saturday — with thin weekend trading volumes sparking new depths of $17,700. On Sunday, Glassnode warned the past three consecutive days had sparked the biggest dollar-denominated realized loss in Bitcoin's history — with $7.3 billion in losses locked in by investors who offloaded coins they had acquired at higher prices. The company warned that the conviction of investors is "seriously being put to the test" right now — and when BTC touched $17,700, just 49% of BTC's supply was in profit. "Historical bear markets have bottomed and consolidated with between 40% and 50% of supply in profit," Glassnode added. BTC secured double-digit gains and mounted an impressive recovery on Sunday — but stopped short of cracking $21,000 on Monday.
One person who hasn't been all that vocal about Bitcoin's movements in recent weeks is Nayib Bukele. El Salvador's president has attracted attention for regularly buying BTC's dips, but estimates suggest that his country's investment has lost over $50 million since September 2021. Bukele broke his silence on Sunday, and sought to adopt a reassuring tone for followers who were nervous about the state of the market. He wrote: "I see that some people are worried or anxious about the #Bitcoin market price. My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market. Patience is the key."
Celsius Network has warned it will take time to stabilize its operations — one week after the crypto lender abruptly halted withdrawals, swaps and transfers. The embattled project said it is maintaining an open dialogue with regulators and officials, but it's come under fire for failing to offer regular updates to customers who fear they'll never get their crypto back. In a statement, Celsius Network added: "We are pausing our Twitter Spaces and AMAs to focus on navigating these unprecedented challenges and seeking to fulfill our responsibilities to our community. Acting in the interest of our community remains our priority and we will continue to work around the clock."
Elon Musk has declared he will "keep supporting Dogecoin" despite the memecoin's value plunging substantially in the past year — and revealed that he's continuing to buy the cryptocurrency. The billionaire's posts may have been related to a recent lawsuit that sues him, as well as Tesla and SpaceX, for a whopping $258 billion. Musk's tweet helped contribute to an 11% surge in the value of Dogecoin in the early hours of Sunday morning, helping to prove that the world's richest man's musings can still have an impact on the altcoin markets. But there's a danger this could pour fuel on the fire of the legal action brought by American investor Keith Johnson.
A Solana-based lending protocol has averted a PR disaster. Solend had approved a proposal that would have given it "emergency powers" to gain access to a whale's wallet and prevent liquidations. It had said the user's "extremely large margin position" put its project, and other users, at risk. Some critics said this proposal went against the values of DeFi — and it might have been downright illegal to control someone's funds this way. Solend later introduced a second governance proposal that allowed a U-turn to be performed, ensuring the whale's account wouldn't be taken over.