Bitcoin and Ethereum shrug off Genesis bankruptcy protection

Bucking the trend of throwing their toys out of the pram every time a crisis hits, however minor or major, the cryptocurrency markets have stayed the course in the face of Genesis’ Chapter 11 bankruptcy protection filing which throws the future of its US$3bn of liabilities into question.

In truth, the move was a long time in the making for the crypto lender, giving the markets plenty of time to price it in.

Read more: Crypto lender Genesis weighs up bankruptcy amid bruising liquidity crunch

There will be time to pore over the court documents in the days ahead, but in the meantime, BTC/USDT is holding steady above US$20,900, having added around 2% on Thursday before shedding around 60 basis points (bps) this morning.

Downside risk could see BTC heading back to US$20700, while bullish momentum could see investors test the US$21,300 price point.

Bitcoin (BTC) digs its heels in following Genesis Chapter 11 – Source:

Ethereum (ETH) closed 2.6% higher at US$1,550 yesterday and has so far managed to cling on to those gains, although the outstanding momentum seen in 2023 is beginning to wane for the world’s second-largest cryptocurrency.

When looking at the ETH/BTC pair, we can see lower highs and higher lows on the four-hour chart, suggesting that the two benchmark cryptocurrencies are converging in their price movements after a prolonged stretch of volatility.

The stars start aligning for BTC/ETH – Source:
The stars start aligning for BTC/ETH – Source:

Top daily movers in the altcoin space include bitcoin hard fork Ravencoin (RVN), decentralised derivatives exchange Synthetix (SNX) and lending platform Nexo.

The latter’s overnight double-digit pump followed a US$45mln settlement with the Securities and Exchange Commission (SEC) after an investigation into its Earn Interest Product (EIP).

Global cryptocurrency market capitalisation currently stands at US$976bn after rising 0.6% overnight, while total value locked across all decentralised finance (DeFi) protocols remains just shy of US$45bn.

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