New energy for cryptocurrencies. The new bill for the State of Texas to accumulate Bitcoin and the ability to use cryptocurrencies as a long-term investment are driving the market’s bullish trend. The world’s best-known crypto asset is already trading at USD 23,000, which translates into a daily increase of 0.40%.
The renewed oxygen of cryptocurrencies seems to add other external causes. Some blame it on an economic report showing US inflation cooled in December. Another fact that seems to have added good vibes are the statements of Loretta Mester, head of the Cleveland FED, who ensured that: “We are not yet at the 5% interest rate level, we are not above 5%, which I think will be necessary given my forecasts on the economy”.
With this underlying backdrop, Bitcoin hit a new high of US$23,232 on Sunday, its best since mid-August 2022. When compared to the price it had a month ago, the increase is 38%.
Not even the collapse of the Genesis exchange seems to affect this new great moment. The cryptocurrency lending firm and its associates, Genesis Asia Pacific Pte. Ltd and Genesis Global Capital LLC, filed a joint petition in the bankruptcy court.
Its reported debt is over $3.5 billion with its main creditors: Gemini, Cumberland, Mirana, MoonAlpha Finance and VanEck’s New Finance Income Fund, according to the presentation that became known in the last hours of Thursday.
These companies are among the companies that were rocked last year by the collapses of hedge fund Three Arrows Capital and cryptocurrency exchange FTX.
Shortly after FTX filed for bankruptcy, Genesis Global Capital had to suspend customer withdrawals, hurting users of a high-performance product offered by the Winklevoss twins’ Gemini cryptocurrency exchange.
declaration of bankruptcy “It is an essential step for us to recover your assets”, Gemini’s Cameron Winklevoss tweeted shortly after the presentation break. And he threatened to sue DCG CEO Barry Silbert over payment on a loan.
The collapse of cryptocurrency hedge fund Three Arrows Capital caused the firm to lose hundreds of millions of dollars, CoinDesk reported last year.
The true extent that the bankruptcy petition could have on bitcoin is not yet known. Today, BTC price is stable at $23,166.09 and $22,983.75 according to data from Binance.
Fernando J. Genazzini
Source: Clarin
