Bitrabo Editorial
Over the weekend, the cryptocurrency market suffered a significant drop in market capitalization, with prices falling sharply. Bitcoin, the leading cryptocurrency, dipped below $60,000, and Ethereum also experienced losses, dropping below $3,000. This downward trend impacted other cryptocurrencies as well.
The crypto industry is known for its volatility, with prices fluctuating due to various factors like market reactions to recent events. The recent price decline is linked to the repayment plans of bankrupt crypto lender Genesis Global Capital.
Genesis Global Capital Repays $1.5 Billion in Cryptocurrency
After completing its restructuring, Genesis Global Capital has begun repaying its creditors after three years of bankruptcy. The lender is distributing around $4 billion to creditors in cryptocurrencies and fiat currencies. Bitcoin creditors will receive 51.28% of their claims, Ethereum creditors 65.87%, and Solana creditors 29.58%.
On Friday, Genesis transferred over $1.5 billion in Bitcoin and Ethereum, causing market volatility. The company moved 16,600 BTC (approx. $1.1 billion) and 166,300 ETH (about $521.1 million), with billionaire Mark Cuban receiving $19.9 million in Ethereum.
BREAKING: GENESIS MOVING $1.5B BTC + ETH FOR CREDITOR REPAYMENTS
Wallets linked with Genesis Trading have moved 16.6K BTC ($1.1B) and 166.3K ETH ($521.1M) in the past hour – likely for in-kind repayments to creditors.
BTC: bc1qmetf6pu6ghr6fv92209sw5x9t5999562t8wmux
ETH:… pic.twitter.com/5Jtxqx8mxT— Arkham (@ArkhamIntel) August 2, 2024
Market Response
Investors reacted to the influx of funds by selling off their holdings, contributing to the drop in prices. Furthermore, creditors cashing out their digital assets after waiting for three years added to the selling pressure, exacerbating the price decline.
The crypto market witnessed a sharp 5.7% decline in 24 hours, bringing the market capitalization to $2.15 trillion, with Bitcoin falling below $60,000 and Ethereum below $2,900.
In addition to Genesis Global Capital, bankrupt crypto entity Mt. Gox has also been repaying creditors. The market may continue to be impacted by these large fund movements as creditors receive their repayments.
Featured image from 123RF, chart from TradingView