where will bitcoin price head next?

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We are two weeks into 2023, and the crypto news cycle shows no signs of slowing down. As we approach the new week, some of the top titles of the month continue to expand.

There’s the drama around crypto financial services firm Genesis, which drew the ire of the Securities and Exchange Commission last week. Elsewhere, digital asset prices continued to post strong gains over the weekend.

Let’s take a look at some of the biggest stories in crypto right now.

What’s next for Genesis?

Genesis, a subsidiary of Digital Currency Group, is waging a war on multiple fronts: with creditors, including crypto exchange Gemini, and US regulators.

The company halted withdrawals and repayments of new loans in its lending unit in November amid significant financial headwinds. Since then, it has sought new funding in an effort to fill what would have been a multi-billion dollar hole.

The past few days have also seen an escalation in the war of words between Digital Currency Group and Gemini over funds locked up in Genesis. Gemini and Genesis partnered with the exchange’s Earn program, which offered interest to users who lent their funds.

The situation escalated further last week when the SEC accused Gemini and Genesis of conducting an unregistered sale of securities through Earn.

What’s next for bitcoin?

Bitcoin’s price is a bit on the tears, in case you haven’t noticed.

The largest cryptocurrency by market capitalization is trending towards $21,000 on major exchanges. Bitcoin started 2023 at around $16,600, according to data from TradingView.

Reports from market-focused reporters at The Block suggest activity in the futures market may be responsible for some of the momentum. The market could also benefit from a slightly less chaotic period compared to November at the height of FTX’s collapse.

As The Block noted over the weekend, crypto-related stocks also benefited from the environment. Coinbase, for example, gained over 41% last week.

Still, the famously volatile digital asset market means no future is assured, which means you’ll have to look to the days ahead to see where bitcoin will fly or fall next.

What’s next for Nexo?

Last week, the story broke that crypto lender Nexo was under investigation in Bulgaria.

Nexo’s offices around the country have been raided by local police as part of what is believed to be an investigation into allegations of money laundering and tax crimes.

Nexo has denied any wrongdoing. “The allegations are nonsense, we are one of the most stringent entities around KYC/AML,” Nexo co-founder and managing partner Antoni Trenchev said last week.

Fears over Nexo’s long-term viability have led to increased withdrawals from its platform.

The situation represents the latest development in a broad arc of scrutiny around crypto lenders. Other lenders in the crypto space, including Celsius and BlockFi, had previously drawn the ire of regulators.

2023 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended for use as legal, tax, investment, financial or other advice.

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