Bitcoin and Ether rise slightly after Genesis Chapter 11 filing

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This article originally appeared in First Mover, CoinDesks’ daily newsletter providing context for the latest moves in the crypto markets. Subscribe to receive it in your inbox every day.

CoinDesk Market Index (CMI)

1,001

+15.8 1.6%

Bitcoin (BTC)

$21,068

+323.9 1.6%

Ethereum (ETH)

$1,556

+34.2 2.2%

S&P 500 Futures Contracts

3,920.00

+4.5 0.1%

FTSE100

7,759.62

+12.3 0.2%

10-year Treasury yield

3.4%

0.0

BTC/ETH price by CoinDesk indices, as of 7 a.m. ET (11 a.m. UTC)

Genesis Global Holdco LLC, the parent company of struggling cryptocurrency lender Genesis Global Capital, filed for Chapter 11 bankruptcy Thursday night after being hit by two of the industry’s biggest meltdowns in 2022, those of the Three Arrows Capital hedge fund and the FTX exchange. In its filing, Genesis Global Capital, the partner company of Gemini’s former interest-bearing Earn program, estimated that it had more than 100,000 creditors and between $1 billion and $10 billion in liabilities, as well as assets. Genesis owes more than $3.5 billion to its top 50 creditors, including crypto exchange Gemini, trading giant Cumberland, investment firm Mirana, MoonAlpha Finance, and VanEcks New Finance Income Fund. Genesis and CoinDesk are both owned by Digital Currency Group, or DCG.

Gemini CEO Cameron Winklevoss threatened to sue DCG CEO Barry Silbert for repayment of a $900 million loan in a tweet posted just minutes after Genesis filed Chapter 11. The tweet comes after Winklevoss waged a Twitter war against DCG to recoup the loan amid his trades. own struggles. Winklevoss called the Genesis bankruptcy a critical step toward recovering Gemini users’ assets. But he still intends to sue Silbert and Genesis’ parent company, DCG, unless Silbert makes a “fair offer” to DCG’s creditors.

Bitcoin rose 1% to around $21,000 in the past 24 hours after news of Genesis broke. Ether rose 2% to $1,545, according to data from CoinDesk. Traders weren’t surprised by the resilience of bitcoin and ether after the news. The market seemed to expect Genesis to file for bankruptcy over the past 48 hours as the GBTC rebate suddenly widened again. With Genesis filing for bankruptcy, this removes a negative market overhang and crypto investors can finally focus on the fundamentals,” said Markus Thielen, head of strategy and research at crypto services provider Matrixport. , referring to the Grayscale Bitcoin Trust, a fund that tracks the price of bitcoin. Grayscale is owned by DCG.

The story continues

(bitwise)

The chart shows that bitcoin has historically moved in four-year cycles centered around halving mining rewards.

The cycles included a 12-month bear market that ended 15-17 months before the halving, setting the stage for a three-year uptrend.

Bitcoin’s fourth halving is expected early next year.

“The conditions are in place for a breakthrough in 2023 that could catalyze a new bull market. We are excited about the growth of Layer 2 solutions, the development of ZK-rollups and privacy solutions, and many other emerging capabilities in crypto,” Bitwise analysts said. led by chief investment officer Matthew Hougan wrote in a fourth quarter review.

Omkar Godbole

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