Crypto Week: Bitcoin drop and APE’s Misery

After several attempts to break through the resistance, Bitcoin prices dropped towards the lower margin of the correction channel at $21,000, and are testing it downwards now. It the bulls fail to take over we may expect a further decline of Bitcoin prices towards $17,600. Altcoins are under similar pressure, as the sentiment in the global markets remain negative.

A sudden pump of Lazio, Barcelona, Milan and Manchester City football clubs’ fan tokens is related more to the beginning of a new season. Bid and ask gap suggest early bird investors are selling tokens to the newcomers, and this rally may be dumped soon.

The most worrying in the cryptomarket is the situation with Bend DAO protocol, where investors were able to lend their ETH for NFTs like Bored Ape Yacht Club as a collateral. In theory, this opportunity could solve an important problem of the NFTs’ lacking liquidity. But it all went wrong after Bend created a pool where investors could deposit their ETH to receive passive income in BEND native tokens. However, the price of this token plunged by 90% of May peaks. Moreover, crypto assets that were purchased on borrowed ETH fell more than twice in price, like APE token.

Unfortunately, it is very hard to find any buyers of funny NTF pictures with apes amid global market correction. Bitcoin and Ethereum were picked up in May as large fund liquidated their positions. But to sell NFTs in large amounts is something out of the reality. This cautionary tale is rather a warning not to deposit your tokens in doubtful projects to receive a promising large passive income on the bullish market. The situation may change quite rapidly as any coin with high amount of emission may fall to a zero value in a short time.