Bitcoin Volatility: Price Drops to $16.5K
The Bitcoin market faces volatility issues as FTX's downfall hits another crypto company, Genesis.
Genesis Global Trading halts withdrawals and new loan originations
Grayscale Bitcoin Trust, the largest Bitcoin fund, dropped 7% on Wednesday as investors dumped more digital assets following the high-profile collapse of crypto exchange FTX last week.
Genesis Global Trading, a cryptocurrency investment bank, tweeted that the company was temporarily halting withdrawals and new loan originations services because of FTX's fall.
Genesis, the most recent victim of FTX volatility, is owned by Digital Currency Group (DCG), which also owns Grayscale.
DCG tweeted that the freezing of Genesis' lending business did not affect the company or its wholly-owned subsidiaries.
Grayscale stated that its products would continue to be fully operational, and its underlying assets would be unaffected. Genesis said that it was working to prevent the same fate as FTX.
The company stated that it had hired the best advisors in the business to explore all potential options.
Further, in a tweet, the company said, "We will deliver a lending business plan next week." The crypto firm claimed that it is working tirelessly to figure out the best lending solutions, including, among other things, sourcing new liquidity.
Following the news on Wednesday, the price of Bitcoin fell even further, with the cryptocurrency now trading just for $16.5K.
Bitcoin volatility has seen the value fall by more than 75% since reaching an all-time high of around $69,000 in November 2021.
Following the collapse of FTX, Bitcoin volatility saw the price fall below $16,000 for the first time since November 2020, after several months of stability.
Impact of FTX collapse
The collapse of FTX shook the volatile cryptocurrency market, which lost billions of dollars in value.
The consequences of the company’s sudden collapse will probably affect cryptocurrencies for a very long time to come and may even cause broader market declines. Many crypto firms are severely affected by the company's bankruptcy news.
Author: Priya Kumari
Priya is a passionate content writer and the co-founder of Finendorse. She is an enthusiastic crypto investor and has a huge interest in the upcoming digitisation age.