Bitcoin Already Priced In Genesis Bankruptcy News? What Next

Bitcoin (BTC) News: Even as crypto lender Genesis Global filed for Chapter 11 bankruptcy protection, the Bitcoin (BTC) price is hardly impacted by the news. The continued strength around the current price level could be an inherent indication of the market already moving past the bankruptcy news. It may be recalled that the possibility of Genesis bankruptcy has been widely speculated over the last few months. Ever since FTX announced bankruptcy, it was almost as if Genesis was next in line.

Also Read: XRP Tops Highest Est Locked Value Tally; Whales Move 356 Million XRP

Interestingly, the recent relief rally with BTC price recovery since the beginning of 2023 is one of the longest such pump in Bitcoin history. The top cryptocurrency grew by as much as 27% compared to January 1.

U.S. Dollar – Bitcoin Correlation

Amid worries of a possible economic slowdown in the U.S., the US Dollar continues to remain at the seven month low level. Compared to the previous high of 114 in September 2022, the U.S. Dollar Index (DXY) is down by around 12%. Bitcoin (BTC) price has been maintaining an inverse correlation with DXY. In this context, the recent price rise of BTC is justified especially with no signs of a positive macroeconomic environment in near future. As of writing, the BTC price stands at $21,128 up 2.12% in the last 24 hours, according to CoinGape price tracker.

Genesis – DCG Scenario

Perhaps owing to the prolonged speculation around Genesis bankruptcy, the crypto market seemed to have taken into account the imminent news in context of the FTX collapse in November 2022. Genesis Global had on Thursday filed for Chapter 11 bankruptcy protection in the Manhattan federal court. This makes it tougher for the Digital Currency Group (DCG), which is looking for a potential buyer for its media company CoinDesk. In this context, the Grayscale Bitcoin Trust, which is also owned by DCG, is facing immense pressure with the GBTC discount now reaching 40.45%.

More importantly, it remains to be seen if the Genesis bankruptcy and possible worsening DCG crisis could lead to tougher regulatory stance from various governments.

Also Read: Shiba Inu (SHIB) Developer Drops Hint On Shibarium Beta Launch Date

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.