The entire Cryptocurrency ecosystem is suffering a real shock, partly due to the loss of investor confidence following the earthquake caused by the fall of the FTX exchange platform and the house investment fund Alameda, which both belong to Sam Bankman-Fried. The aftershocks were long overdue, and Genesis, an American trading company which specializes in crypto lending and which mainly targets institutional clients, could become the first big victim of the FTX-Alameda affair. This turmoil has served Bitcoin, which is trying hard to parry the blows, and is currently below the level of $16,000 at $15,633.
In order to avoid bankruptcy Genesis has engaged in a real race for financing up to 1 billion dollars. In this context, the firm has appealed to the investment fund Apollo Global Management as well as to Binance but has suffered a re-buff. The exchange platform explained that a potential conflict of interest with the economic model of Genesis would be at the origin of its withdrawal. Last night the company announced that it was revising its need for refinancing downwards, from 1 billion dollars to 500 million. However, the company said it had no plans to file for bankruptcy ‘imminently’.
Source: @Genesis sur Twitter
Already today, crypto broker Genesis warned of the risk of bankruptcy due to contagion from the rapid demise of Sam Bankman-Fried’s FTX empire, according to Bloomberg .
This heavy climate has been all the more exacerbated by the return of the Dollar as a safe haven, the surge in the number of Covid cases in China, and the hawkish remarks of certain members of the FED as well as the continuation of the war in Ukraine which could engender a risk of nuclear accident.
Technical Analysis
BTC price is currently at the $15,700 level below its KIJUN (Lv) and Tenkan (Lj) cloud; the lagging span (Lb) is located below the cloud and its partners clearly showing a bearish momentum. This decline could lead the price to its lowest level at $15,428, and if it is broken it could reach its support at the level of $14,000 for a second time. Conversely, if the price starts to rise again, it could reach $18,354.
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Kader Djellouli
Market Analyst
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