How The Crypto Market Weathered the Genesis Storm?
In the past 24 hours, Bitcoin and Ethereum prices have remained relatively stable despite the bankruptcy filing of Genesis Trading under Chapter 11. According to recent data, Bitcoin is currently trading at around $20,930, an increase of 1% and Ethereum is trading at approximately $1,549, an increase of 1.5%.
The collapse of Genesis Trading has brought attention to Digital Currency Group and its subsidiary, GBTC, which holds over 600,000 Bitcoins. Genesis Trading has attributed its failure to meet loan obligations to creditors to the collapse of FTX, Alameda, and 3AC.
However, Gemini co-founder Cameron Winklevoss has accused DCG CEO Barry Silbert of engaging in unethical business practices with the subsidiary trading firm. Despite these developments, the prices of Bitcoin and Ethereum have not shown a significant negative reaction to the bankruptcy of Genesis Trading.
Interestingly, the GBTC from Grayscale has experienced a 5.82% increase today according to data from ycharts.com. Market analysts have noted that the filing of bankruptcy protection by Genesis Trading eliminates uncertainty in the market.
Additionally, rumors of possible bankruptcy protection have been circulating for the past two months, despite denials from DCG. Markus Thielen, head of strategy and research at crypto services provider Matrixport, stated,
“The market appeared to expect the Genesis bankruptcy filing for the last 48 hours as the GBTC discount suddenly widened again. With Genesis filing for bankruptcy, this removes a negative overhang from the market, and crypto investors can finally focus on fundamentals.”
However, it’s worth noting that the total crypto market volume has dropped by 31% in the last 24 hours to approximately $40.52 billion, according to data from Binance-backed Coinmarketcap. This sharp decline in trading volume could signal a possible price correction in the near future.
Given the current scenario, we would like to know your thoughts on the bankruptcy filing of Genesis Trading and its potential impact on the crypto market.