Staff layoffs continue for companies in the crypto sector, after a rather negative week that continues with the uncertainty generated for a few weeks now. Various institutions and analysts predict a short-term collapse for highly volatile assets, including, of course, cryptocurrencies. On the other hand, advances are approaching in the regulation of crypto assets in the European Union.

The cryptocurrency market finished a quite negative week, in which Bitcoin and other assets are approaching their minimum price this year, in a decisive area for the short-term future of crypto assets. The market capitalization has fallen dramatically in recent days, and it was even reported that last Friday more than $55 billion were lost in just that day, being one of the strongest crashes (-5.1%), placing a value close to $865 billion dollars in total market capitalization. One of the reasons that has generated a lot of uncertainty and shows a complicated panorama in the crypto market is the cutback in personnel in a large part of the companies focused on this sector. One of the companies that has had to take such measures is the Australian exchange platform, BitPanda. Through a blog post, the founders have announced that they will make a series of layoffs to a large number of workers due to the insolvency caused by the bear market. Those affected in this case would be 730 employees, about 30% of the total in the company, since they will lose their jobs.

With this, BitPanda joins the list of companies in this category that are beginning to feel the effects of the impending economic recession and the bear market, along with various important organizations such as CoinBase, Crypto.com, Bitso, Gemini, among others, the which have also announced that they will have or have already had staff reductions. Continuing the uncertainty in the market, the previous week it was revealed that the renowned Singapore crypto hedge fund, Three Arrows Capital, defaulted on a loan of more than $670 million. The American brokerage platform, Voyager Digital, issued a statement last Monday morning, in which they announced that Three Arrows Capital did not comply with the payment of a loan of $350 million in the stable currency USD, which follows the value of the US dollar. In addition, they also failed to pay another loan in Bitcoin, this being today for an amount greater than $323 million.

Voyager Digital has communicated that the platform suspended all trading services, deposits, withdrawals and customer loyalty rewards, according to a statement published last Friday afternoon. The CEO of the platform, Stephen Ehrlich, mentioned that the decision was made in order for the company to explore alternatives and design intelligent strategies to overcome the current market situation. In other news, regulations are beginning to take shape towards companies that issue crypto assets in the European Union, since after different events of uncertainty and that have caused a lot of panic in users and financial institutions, such as the collapse of Terra (LUNA ), the European authorities seek to put a heavy regulations on the issuers of crypto assets. It has been determined that cryptocurrency companies wishing to issue and sell digital tokens in the European Union territory will need a license subject to innovative new rules agreed by the bloc in order to keep an extremely tight rein on a highly volatile market. This after Representatives of the European Parliament and the EU states reached an agreement last Thursday night on their Crypto Asset Markets Law (MiCA). Not everything is uncertainty and negativity in these moments of crisis, and it is beginning to sound loud that the American firm, Goldman Sachs, would be seeking to raise $2 billion dollars from a large number of investors to purchase assets from the cryptocurrency lender Celsius. , which has had solvency problems over the last few days. The proposed deal would allow investors to buy Celsius’s assets at potentially deep discounts in the event it files for bankruptcy. Even for some the fall of the market represents a great opportunity, and it is that the president of El Salvador, Nayib Bukele, announced on Thursday of the previous week the purchase of 80 BTC for a figure greater than $1.5 million, thanking the market situation by “selling cheap”. The bet of this young president towards the crypto sector for the development of this country is quite strong, while the Minister of Finance of said country, Alejandro Zelaya, mentioned that the country has not registered losses, since they maintain the total of crypto that have been purchased over the last few years. #HODL Bitcoin is above $19,500, close to a very important support zone, in which this year’s lows are found, so if it gets broken, we could witness a fairly strong fall in the crypto market. BTC/USDT 1D (TradingView Chart) Ethereum behaves similarly, trading just above $1,000. Unlike Bitcoin, ETH seems to have a little more strength to pull back before the predicted drop. ETH/USDT 1D (Gráfico de TradingView) The outlook is increasingly complicated for the short term of the cryptocurrency market. However, institutions and large investors are beginning to see opportunities in the midst of panic and uncertainty, generating great hope in the long term. Without further ado, we wish you an amazing week.