Bitcoin price dips to $16.4K over Genesis woes as execs defend GBTC

Bitcoin (BTC) fell to intraday lows aft the Nov. 16 Wall Street unfastened arsenic the FTX ungraded appeared to assertion different victim.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

Genesis Trading liquidity "exceeded"

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading astir $16,400 astatine the clip of writing.

Downside had entered again for the brace amid news that Genesis Global Capital, the crypto lending limb of Genesis Trading, had paused withdrawals implicit liquidity problems.

In a series of tweets connected the day, Digital Currency Group (DCG), the genitor institution which counts Genesis Trading among its subsidiaries, attributed the determination straight to the FTX debacle.

“Today Genesis Global Capital, Genesis Trading's lending business, made the hard determination to temporarily suspend redemptions and caller indebtedness originations,” portion of the thread stated.

“This determination was made successful effect to the utmost marketplace dislocation and nonaccomplishment of manufacture assurance caused by the FTX implosion.”

DCG added that its different operations were unaffected, these including Grayscale and its Grayscale Bitcoin Trust (GBTC), the industry’s largest organization concern vehicle.

“The interaction lies with the lending concern astatine Genesis and does not impact Genesis’s trading oregon custody businesses,” the thread concluded.

“Importantly, this impermanent enactment has nary interaction connected the concern operations of DCG and our different wholly owned subsidiaries.”

GBTC traded astatine a adjacent grounds discount to the Bitcoin spot terms connected the day, having breached beneath -40% successful November, information from on-chain monitoring assets Coinglass confirmed. Industry commentators were concerned astir imaginable contagion spreading to the largest BTC holder.

"The assets underlying $GBTC and each Grayscale products stay harmless and secure, held successful segregated wallets successful heavy acold retention by our custodian Coinbase," Grayscale confirmed connected the day.

GBTC premium vs. plus holdings vs. BTC/USD chart. Source: Coinglass

The constricted scope of the issues astatine Genesis frankincense allowed Bitcoin to debar important caller losses. As Cointelegraph reported, aggregate different manufacture businesses had already signaled that FTX vulnerability was placing them nether financial strain.

Genesis itself meantime said that its problems had begun acknowledgment to the Terra LUNA debacle and associated insolvency of trading firm, Three Arrows Capital (3AC).

“The default of 3AC negatively impacted the liquidity and duration profiles of our lending entity Genesis Global Capital. Since then, we person been de-risking the publication and shoring up our liquidity illustration and the prime of our collateral,” portion of its ain Twitter thread read.

“However, FTX has created unprecedented marketplace turmoil, resulting successful abnormal withdrawal requests which person exceeded our existent liquidity.”

Old coins awaken aft FTX “black eye”

Analyzing the ongoing interaction connected Bitcoin itself, on-chain analytics steadfast Glassnode avoided a consciousness of panic.

Related: Bitcoin miners nonstop little BTC to exchanges since 2020 halving contempt FTX

In the latest variation of its play newsletter, “The Week On-Chain,” it described the FTX lawsuit arsenic a “real achromatic eye” to the crypto industry.

Among the indicators nether appraisal for the week was the mean property of Bitcoins moved on-chain.

At 90 days, this was 3 times older than during September and October, but notably not a important humanities anomaly.

“The uptick successful older coins being spent is noteworthy, and is successful enactment with peaks seen during erstwhile capitulation sell-off events, and adjacent the 2021 bull marketplace nett taking,” it wrote.

“A sustained up-trend oregon elevated level of Dormancy whitethorn bespeak a much wide panic has taken basal amongst the HODLer cohort.”

Bitcoin play sum of revived proviso annotated illustration (screenshot). Source: Glassnode

As Cointelegraph reported, the wide feeling successful analytics circles remains 1 of “wait and see,” with the imaginable for a worsening of terms enactment successful the abbreviated word firmly connected the radar.

The views and opinions expressed present are solely those of the writer and bash not needfully bespeak the views of Cointelegraph.com. Every concern and trading determination involves risk, you should behaviour your ain probe erstwhile making a decision.