Bitcoin on track for 13% weekly gain as investors likely assess Genesis bankruptcy

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Bitcoin (BTC-USD) is on track to end the week up over 13%, despite another cryptocurrency company falling victim to the recent digital asset market downturn.

The parent company of struggling crypto lender Genesis has filed for bankruptcy, reeling from losses from the collapse of FTX and Three Arrows Capital.

Markus Thielen, head of research at crypto services provider Matrixport, said the market appears to have priced in Genesis’ bankruptcy. “With Genesis filing for bankruptcy, this removes a negative overhang from the market, and crypto investors can finally focus on the fundamentals.”

In a weekly report, Thielen said that “the fundamental reason why crypto is outperforming this year is that transaction fees and revenue are rising again.”

Bitcoin (BTC-USD) rose 7% on Friday to hit $22,560, its highest level in more than four months. The global crypto market cap is currently at $1.04 billion, up 5.9% from Thursday, according to CoinMarketCap.

FTX Updates

FTX Token (FTT-USD) surged after new FTX chief John Ray said he was considering potentially reviving the bankrupt exchange as customers suggested the move would recover more value than liquidation of assets. FTX Debtors have identified about $5.5 billion in salable assets under the new management which is recovering lost assets to repay creditors. The CEO of financial services provider Monex Group, Oki Matsumoto, has expressed interest in FTX Japan.

The contagion continues…

News site CoinDesk is considering a partial or full sale of the company. It is a unit of Digital Currency Group, which is also the parent company of Genesis. Genesis owes its top 50 creditors more than $3.5 billion, one of which — VanEck’s New Finance Income Fund — has ties to two Fairfax County pension funds. Tokens.com (OTCQB:SMURF) revealed that it has an open lending facility with struggling crypto lender Genesis. Silvergate Capital (SI) said it has minimal exposure to Genesis. Coinbase (COIN) will halt operations in Japan due to volatile market conditions, days after announcing a second round of job cuts.

Regulatory scanner

The SEC has accused Avraham Eisenberg of price manipulation of the MNGO token, alleging he stole around $116 million in crypto from the Mango Markets exchange. The DoJ has accused Anatoly Legkodymov, founder of the Bitzlato exchange, of facilitating an illegal money transmission business that allegedly handled more than $700 million in illicit funds. Binance was listed as one of the top three receiving and sending counterparties in an order against Bitzlato.

bitcoin price

Bitcoin (BTC-USD) jumped 7.5% to $22.69K as of 5:48 PM ET, while Ether (ETH-USD) gained 6.8% to $1.65K.

Bitcoin (BTC-USD) is approaching overbought territory and appears to have formed a new support level at $21,000. Author SA Bitcoin Magazine PRO thinks the growing scarcity of bitcoin will lead to higher demand. “Despite negative news and bitcoin’s declining price, our bullish conviction for its long-term value proposition remains unfazed.”

Crypto-related stocks that finished higher on Friday include: Soluna (SLNH) +20.9%, Cipher Mining (CIFR) +16%, Hut 8 Mining (HUT) +15.7%, Coinbase (COIN) + 11.6%, Marathon Digital (MARA) +10%.

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