BLOCK Ripple Bitcoin

Top 3 Reasons Why Crypto Prices Are Not Plummeting After Genesis Bankruptcy News

Reading now: 811

Genesis is one of the largest companies in the Bitcoin and crypto space, and has this morning announced that they are to be entering into a chapter 11 bankruptcy filing, after many of the loans that they issued to various parties in the crypto space soured.

Many in the cryptocurrency space are lamenting the degree to which figures that love criminality and taking huge risk have been plaguing the cryptocurrency space over the course of 2022, and One of the main reasons why the price hasn't responded significantly to the news is the fact that the market has already priced it in.

After the collapse of FTX, it became obvious to investors that there would be a further series of collateral damage rippling across the industry, and the market prepared for this.

In a worst case scenario, DCG could choose to unwind some of the Greyscale Trust's assets in order to reimburse some of their creditors, which would incur significant further selling pressure, depending on how it would be done - it could either be achieved by disbursing the Bitcoin held in the trust to creditors, or (as is traditional) liquidating the assets and disbursing the dollar value.

The website is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News