The cryptocurrency industry has recently seen a significant drop in its overall market value with prices falling sharply over the weekend. This drop was particularly noticeable BitcoinBitcoin, the leading cryptocurrency by market cap, fell below $60,000 on Saturday, August 3. Ethereum, the second-largest cryptocurrency, also suffered significant losses, falling below $3,000 and hitting a low of $2,860. This caused other cryptocurrencies to follow suit, with most of them immediately recording heavy losses.
This volatility is not uncommon in the cryptocurrency space, where prices often fluctuate dramatically in response to various factors. These price fluctuations are usually driven by market reactions to recent news or events. In this case, the most recent price drop can be attributed to Payment plans bAnd bankrupt crypto lender Genesis Global Capital.
Genesis Moves $1.5 Billion in Cryptocurrencies
Finally, Genesis Global Capital, a bankrupt crypto lender, has completed its restructuring and is now in the process of repaying its debts to creditors after three years. According to According to Bloomberg, the lender has now begun giving its creditors an immediate distribution of about $4 billion in both cryptocurrencies and fiat currencies.
The breakdown of the distribution indicates that Bitcoin creditors will receive 51.28% of their claims, Ethereum creditors will receive 65.87%, and Solana creditors will receive only 29.58% of their claims.
As such, Genesis moved over $1.5 billion worth of Bitcoin and Ethereum on Friday, sparking a wave of market volatility. According to on-chain data from Arkham Intelligence, the company moved a total of $1.5 billion, including 16,600 Bitcoin (worth around $1.1 billion) and 166,300 Ethereum (worth around $521.1 million). Among the notable beneficiaries was billionaire Mark Cuban, Who received? $19.9 million worth of Ethereum in payments.
BREAKING: GENESIS Moves $1.5 Billion in BTC + ETH to Pay Off Creditors
Wallets linked to Genesis Trading moved 16.6k BTC ($1.1 billion) and 166.3k ETH ($521.1 million) in the past hour — most likely to make in-kind payments to creditors.
Bitcoin: bc1qmetf6pu6ghr6fv92209sw5x9t5999562t8wmux
Ethereum:… pic.twitter.com/5Jtxqx8mxT– Arkham (@ArkhamIntel) August 2, 2024
Market reaction
As such, many investors appeared to respond to the influx of new funds by liquidating their holdings, which in turn contributed to the decline in prices of many already struggling cryptocurrencies. The price decline can also be attributed to the decision of paying creditors to withdraw their digital assets after a long wait of three years, which added to the selling pressure and exacerbated the price decline.
The cryptocurrency market has seen a sharp decline, falling by more than 5.7% in 24 hours, bringing the market cap down to $2.15 trillion. As mentioned earlier, Bitcoin has fallen below $60,000, and Ethereum has fallen below $2,900.
Genesis Global Capital isn’t the only cryptocurrency company that has recently gone bankrupt. Bankrupt Bitcoin exchange Mt. Gox was also involved. Pay off her creditors Over the past few weeks. The market may continue to respond to these large movements of funds as creditors Receive Their plugs.
Featured image by 123RF, chart by TradingView
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