Bitcoin has retraced to its $20,000 to $22,000 trading channel after bouncing from a weekly low of $17,700 over the weekend.1

Leading crypto hedge fund Three Arrows Capital failed to meet margin calls, raising concerns about its solvency. A number of lenders to the fund have been affected, including Voyager Digital.2

Crypto exchange FTX, founded by Sam Bankman-Fried, has stepped in to provide BlockFi a $250M credit facility amid liquidity concerns. Bankman-Fried’s crypto hedge fund Alameda Research has also provided a $200M and 15,000 Bitcoin term credit facility to Voyager Digital (for a full breakdown of Bankman-Fried’s rescue efforts of the sector, see The Story of the Week).

According to a report from McKinsey, the Metaverse could generate $5 trillion in value by 2030. The management consulting leader has denoted it as ‘too big to be ignored’ due to its prospective impact on our commercial and personal lives.

Bitcoin’s MVRV Z-score, a metric for assessing whether the token is over/undervalued, has fallen into the undervalued zone. Historically, this metric has served as a leading indicator for identifying market bottoms (see quantitative section).

Bitcoin continues to trade below its realized price of $22,605. The realized price is an on-chain metric for the average price of all tokens in circulation (see note from last week).