While the effects of the FTX crisis continued, the leading cryptocurrency Bitcoin fell below the $ 16 thousand support. However, crypto company Genesis has announced that it may go bankrupt due to its liquidity problem. Let’s examine together what is going on in the crypto money market.
What’s the Latest Situation in the Markets?
The collapse of FTX continues to affect the cryptocurrency industry. This process has greatly reduced the trust in crypto exchanges and cryptocurrencies, and the leading cryptocurrency Bitcoin is priced at $ 15 thousand 700, falling below the 16 thousand support. This is the lowest level Bitcoin has seen in 26 months. According to daily data, Bitcoin has lost 2% of its value, while the leading altcoin Ethereum has lost 2.39% and is priced at $ 1080. With the FTX crisis, a significant amount of $ 239 billion was deleted from the crypto money market in the past 2 weeks. Among the reasons why Bitcoin fell below the $ 16 thousand level, the liquidity shortage experienced by Genesis stands out.
Is Genesis Going Bankrupt?
The Genesis company previously announced that it received abnormal withdrawal requests after FTX’s bankruptcy and had difficulty meeting them. For this reason, the withdrawals were temporarily suspended. Digital Currency Group, the umbrella company of Genesis, recently made a statement to the US press, stating that they had constructive talks with creditors and that they were not considering filing for bankruptcy yet. However, it was rumored that Binance would make an offer to the company in search of assets, but Binance gave up on this offer. It was cited as the reason why Binance withdrew from the offer that some of the business of Genesis company may cause future conflicts of interest. If Genesis fails to raise the necessary funding, it will be declared bankrupt. This could further deepen the crisis in the cryptocurrency market.
In this difficult situation of Genesis, investors who thought that they would harm Grayscale, another company of the Digital Currency Group, continued to withdraw from the funds, while the negative premium of the Grayscale Bitcoin Trust reached -50%. While being a buyer lowered the value of Grayscale Bitcoin Trust, a new purchase came from Ark Invest. Ark Invest reported on November 21 that it has purchased 176,000 shares of Grayscale Bitcoin Trust. This equates to about $1.4 million. While many investors were fleeing from Grayscale, the fact that Ark Invest bought at these low levels also raised the question of whether the rumors that Digital Currency Group and Genesis will go bankrupt.
Miners Are Selling
Another reason that causes the Bitcoin price to drop is Bitcoin sales made by miners. Miners face great challenges to continue their operations amid falling price and rising energy costs. According to market experts, this may cause more selling pressure on the Bitcoin price.
Arthur Hayes Commented on BTC
Former BitMEX CEO Arthur Hayes, who shared the news that Bloomberg’s Genesis company was accompanied by bankruptcy on his Twitter account, spoke about BTC: “Now this is over. Bitcoin = $10,000.”
Hayes stated that he expects the level of 10 thousand dollars in Bitcoin last week and is ready to buy from this region.
As Arthur Hayes said, we do not know whether the Bitcoin price will fall to the level of 10 thousand dollars, but if you wish, let’s take a look at the support and resistance points that we need to watch for Bitcoin.
BTC Price Analysis
The first support level we need to follow for Bitcoin, which is below the $ 16 thousand level, is at $ 15,500, while the other support point is at $ 14,400. If the positive news comes, there is an atmosphere of confidence in the market, and if the Bitcoin price goes up, the resistance levels that we need to watch are at $ 16,800 and $18,300.
