The bear market hasn’t been easy for many crypto companies as they have been hit with hard times that require them to become insolvent, with the likes of LUNA and FTX making the headlines, with the latest being Genesis filing for bankruptcy after having so much dispute with a similar cryptocurrency firm Gemini after facing charges from the United States Security Exchange Commission (SEC).
Following the news from Bloomberg of Genesis owing its top creditors $3.4 Billion on the 18th of January, 2023, as the Digital Currency Group (DCG) prepares to file for bankruptcy after several negotiations behind closed doors with creditors as the cryptocurrency firm beforehand highlighted it would need to file for bankruptcy if it fails to raise the required funds needed to rescue the present situation it found itself.
The year began with Gemini and Genesis having a public fight as a result of the Genesis Earn program, as this issue has escalated beyond measure requiring the SEC to step in. With the company filing for Chapter 11 bankruptcy, it has stated to have over $150 Million in its custody, which would be used for restructuring plans as this would be the way forward to rescue this situation.
Bitcoin Price Update Ahead Of Genesis Bankruptcy
With the current bear market becoming more intense for crypto firms and projects, it is yet to be determined when things will change for the better. The price of Bitcoin (BTC) continues to show strength, rallying from a low of $16,700 to a high of $21,300, but the market still looks low compared to its all-time high of $69,500.
With the price of BTC looking more promising as many traders and investors look forward to when the market will enjoy more relief bounce with many crypto firms struggling to stay afloat to become more stable financially.
With the total market cap at a critical resistance of $950 Billion, a break and close above this region could mean a rallying to a $1.2 Trillion market cap which could lead to the price of BTC and other altcoins rising significantly.
Image From Marca, Chart From Tradingview