Crypto hedge fund Three Arrows Capital reportedly liquidated all its Staked Ethereum (stETH) holdings in one of its wallets on Friday. The firm is rumored to be in a tight spot where they finally decided to liquidate their holdings to repay debts and outstanding loans.
It is feared that this move will have a negative impact on the market. The crypto market is likely to fall again which eventually leads to billions of dollars in liquidity.
Three Arrows Capital converted 5500 stETH to 6.1 million USDT yesterday from one of their wallets. After the transaction, the wallet address has nearly 14,118 stETH balances
However, on June 17, Three Arrows Capital decided to liquidate all 14,118 stETHs for 13.5 million USDT in two transactions. Based on Etherscan data, the first transaction involved 7000 sETH for 6.86 million USDT, and the second transaction, 7118 stETH for 6.79 million USDT.
Three Arrows Capital (3AC) has dropped stETH on an ongoing basis. Previously, many people thought that Celsius was the biggest ‘dumper’ of STETH, apparently not because 3AC is now eligible to hold the title. 3AC has reduced its holdings of Ethereum as well as stETH massively in the last 2 months.
Not only that, several companies, such as BlockFi, have started selling their positions in Three Arrows Capital. In addition, several 3AC -related companies experienced problems in operations For example, Finblox, a CeFi company, has withheld reward distribution due to 3AC fluctuations.
With $ 18 billion in that management operation, any unfortunate thing that befalls Three Arrows Capital could be a disaster for the crypto market. Users should also keep an eye on other Three Arrows Capital holdings such as Bitcoin, Solana, Kusama, Avalanche, Polkadot, and others. If financial constraints increase, then the cryptocurrencies mentioned have the potential to be liquidated.
The price of stETH once again fell below the $ 1000 level today.
