Bitcoin has been experiencing a negative price trend since the week of March 20th, and despite intermittent recoveries, the bulls are weakening. Unable to surpass the $71,500-$71,700 threshold, the bulls are being pushed towards deeper lows. At the time of writing, Bitcoin is finding buyers at $67,500. So, what are the details of the latest developments?
Why Did Bitcoin Fall?
As we have repeatedly mentioned since the week of March 20th, the heavy GBTC sales were related to the redemption of GBTC assets held by Genesis. Now, a Bloomberg report confirms this. According to the report, Genesis, once the largest crypto lending company, sold its GBTC assets to purchase 32,041 BTC as it needed to pay its creditors, much like during the FTX bankruptcy process, converting its assets into BTC and cash.
The bankruptcy of Genesis could have had far more significant consequences for the crypto industry and could have triggered the collapse of a giant like DCG. Fortunately, for now, the situation has been narrowly avoided without creating a domino effect. With the completion of the sale of Genesis’s assets, the days of net outflows in the ETF channel should now be behind us.
The current issue is today’s US data. The employment sector continues to report strong figures, and wage increases did not fall below expectations. This has caused weakness in the BTC price.
