Bitcoin (BTC) faced a sharp decline during U.S. trading hours on Friday, dropping 3.91% over the past 24 hours to trade at $61,944.73 at the time of writing. This marks the fourth consecutive day of losses for the leading cryptocurrency as global market turmoil drives investors towards safer assets, leaving major cryptocurrencies in the red.
Genesis Trading’s Moves Signal Market Impact
Genesis Trading, a significant cryptocurrency lender, has removed 166,300 ETH (about $521.1 million) and 16,600 BTC (about $1.1 billion) from its wallets, which has alarmed the market.Â
These deals are a part of the business’s continuous attempts to pay back creditors after it collapsed in 2022. This process is similar to what happened with the now-closed Mt. Gox exchange, which released 59,000 BTC this month out of the 142,000 it owes its creditors.
Also read: Kraken Successfully Distributes Mt.Gox Funds To Creditors
The price of Bitcoin is probably going to be significantly impacted by the reimbursement actions taken by Mt. Gox and Genesis. The U.S. government’s prospective sales of its Bitcoin holdings and the additional supply from these repayments have all contributed to a string of supply shocks that have put pressure on the cryptocurrency market.
With the price of Bitcoin falling below $62,000, investors are becoming more concerned.
Santiment, a cryptocurrency analytics company, observed that while there is less zeal for purchasing the dip, this decline is comparable to the one that occurred in early July.
The company identified significant psychological benchmarks, including $60,000 for Bitcoin and $2,900 for Ethereum as critical levels that may pique traders’ interest once more.
New Developments and Potential Risks
There might be another related news which might add to the potential causes for Bitcoin trading red today. Cryptocurrency influencer Wise Advice made public a shocking revelation concerning FTX, the now-defunct exchange that Sam Bankman-Fried once owned.
According to a whistleblower who was allegedly a former employee of FTX, the exchange was holding a significant amount of Solana (SOL) in secret, which is equal to 8% of the coin’s entire supply. This announcement raises the level of market uncertainty even more, which could affect SOL’s price and investor confidence.
Several unfavourable elements, including institutional liquidations, regulatory proceedings, and disclosures of concealed holdings by significant industry participants, characterize the current state of the market. Traders and investors are closely monitoring market dynamics as Bitcoin and other cryptocurrencies negotiate these difficulties, especially the supply-side pressures that may have an impact on pricing soon.