#bitcoin tumbling

[stepfordgoth]

boop?

[dispatchesfromtheclasswar]

What happens when you let a crypto bro run a country.

[mariacallous]

Following the bankruptcy of one of the world’s largest cryptocurrency exchanges, FTX, the price of bitcoin (BTC) has tumbled again. It is now about $16,500 – a far cry from the all-time high of $66,000 just a year ago.

Why such a large drop in value? It’s because of the highly toxic combination of an exchange (an electronic platform for buying and selling) called Binance, a stablecoin (a crypto whose price is pegged 1:1 to the US dollar or another “fiat” currency) called tether, and the skilled professional traders running high-frequency algorithms.

Unlike stocks, bitcoin can be traded on many different exchanges, but Binance has more than 50% of the entire crypto market, and as a result it sets the price of bitcoin and other cryptocurrencies. In order to buy cryptocurrencies, traders must convert fiat money, into a stablecoin like tether. Bitcoin-tether has by far the largest volume of all products on Binance, and because one dollar usually equals one tether, trading on bitcoin-tether sets the dollar price of bitcoin. But when bitcoin crashes, so does the entire crypto ecosystem.

The issue is that Binance is only self-regulated, meaning it is completely unregulated by traditional market regulators such as the Securities Exchange Commission in the US or the Financial Conduct Authority in the UK. This is a great attraction for professional traders because they can deploy high-frequency price-manipulation algorithms on Binance, which are against the law in regulated markets. These algorithms can cause rapid price movements up and down, making bitcoin extremely volatile.

Binance does its own clearing and settlements of trades, the same as all other self-regulated crypto exchanges. This means that losing counterparties – those on the other side of profitable trades – often have their positions wiped out automatically without notice.

Unlike normal exchanges, self-regulated crypto exchanges aren’t required to raise the alarm when a trade has lost so much money that the collateral in the account needs topping up. Instead, traders are solely responsible for funding their accounts by continually monitoring something called the liquidation price. This is done automatically by the algorithms run by professional traders, but it is exhausting for ordinary players like you and me, who need to remain highly vigilant whenever manipulation is being used to create the volatility that professional traders use to increase their profits.

When professionals trade against each other it is called toxic flow, because the chance of profit is more like 50-50 if their algorithms are equally fast and effective. Professional traders much prefer their counterparty to be an ordinary investor.

This is worrying because Binance has been hugely successful at attracting ordinary investors. The fees it earns from this kind of investor have funded its very rapid expansion; it is now branching out with its own stablecoin, blockchain and NFT marketplace. Binance is consolidating its role as the Amazon of crypto, following a very effective business model.

In some ways one can liken the current circumstances in crypto markets to the burst of the dotcom bubble in 2001-2. The venture capital that had poured into internet startups in 1999-2000 suddenly dried up, as many companies went bankrupt. This year, Three Arrows Capital, one of the largest crypto hedge funds, defaulted on its loans, and major crypto-lending companies Celsius and Voyager filed for bankruptcy as the price of bitcoin collapsed, following some unexpected and shocking attacks on a new type of stablecoin called Terra. Following the bankruptcy of FTX, several other exchanges such as Gemini, and lending platforms (shadow banks) including Genesis are preventing customers from withdrawing their funds.

We shall see a lot more of this contagion, precipitating widespread bankruptcies among startups now that venture capital has dried up in the crypto sector. More exchanges and lending platforms, as well as blockchains, NFT marketplaces, data aggregators and analytics companies, will all bite the dust.

Binance could emerge from this chaos with a monopoly. But right now, this non-domiciled and self-regulated company still needs fee revenue from ordinary investors, and it needs market makers (professional traders akin to unfriendly stall holders on the exchange) to conduct its business.

The danger is that everyone is very scared now, so the only way to draw in ordinary investors is to pump up the price of bitcoin again. This would tempt people back into the crypto game, only to have their savings wiped out as the cycle of volatility continues.

[dailyunsolvedmysteries]

Ivana Smit

A Dutch model who apparently plunged to her death after a threesome with a millionaire and his wife tumbled from the 20th floor of a Kuala Lumpur condominium and landed on a sixth floor balcony in December 2017. Ivana Smit’s death made headlines after claims emerged that a Bitcoin millionaire Alexander Amado Johnson, 45, and his model wife, Luna, 32. together with 18-year-old Smit,had consumed large quantities of drugs and alcohol and had group sex. 

An inquest found the death was "misadventure”. That was despite evidence of bruises and trauma on her body and DNA traces of the American under her fingernails, according to media reports. However, a high court granted an application by Smit’s family to set aside the inquest’s findings, ruling that her death was possibly caused by someone else. “The court ordered the attorney general to instruct the police to reinvestigate the cause of death, and for the case to be reclassified under Section 302 (of the Penal Code),” said police criminal investigation department chief Huzir Mohamed. 

The case is still ongoing in 2022.

[beardedmrbean]

Do Kwon, the creator of the cryptocurrencies Luna and TerraUSD, has become one of the most hated men in South Korea after a Seoul court issued an arrest warrant for him this week over his alleged role in the collapse of the global cryptocurrency market earlier this year. 

The sudden collapse of the cryptocurrencies in May triggered losses in the billions of dollars among investors both large and small, and led South Korean authorities to issue an arrest warrant Wednesday for Kwon. As the co-founder and CEO of the Terraform Labs cryptocurrency ecosystem, Kwon stands accused of stock exchange violations and fraud. 

The digital sector is still reverberating from the devastating financial losses and the company’s spectacular demise that have turned the 30-year-old crypto entrepreneur into arguably the most hated man in South Korea. Adding to the scandal is the fact that Kwon has become a fugitive.

Although his whereabouts remain unknown, he continues to be visible on Twitter. He has posted apologies and even promised a triumphant comeback.

‘The financial guru of a cult’ 

Seoul authorities, meanwhile, suspect he is hiding in Singapore as Kwon has offices in the Asian city-state, which does not have an extradition treaty with South Korea.

They are hesitating between several avenues to bring the engineer out of hiding, said the Financial Times, and have raised the idea of cancelling his passport or asking Interpol to issue a red alert – both of which would impede the fugitive's ability to travel.

Due to the magnitude of the financial harm suffered largely by South Koreans as a result of the downfall of Kwon’s crypto-empires, Seoul is determined to do everything possible to bring him to justice. In all, nearly 200,000 people lost money after investing in Luna or TerraUSD. Hashed – a powerful investment fund specialising in digital assets that suffered $3 billion in losses – was among them.

Understanding why so many took a gamble on Kwon has a lot to do with the power of social media – he managed to attract a vast network of followers. "He was almost like the financial guru of a cult," said Donghwan Kim, a South Korean investment adviser in an interview with the Financial Times. 

From Stanford to the ruthless world of cryptocurrencies 

Kwon had the profile of a computer genius. He graduated from Stanford University with a degree in computer engineering at the age of 24 in 2015 and then worked for two Silicon Valley behemoths: Microsoft and Apple.

Three years later, he embarked on the cryptocurrency path by founding TerraUSD and Luna. The former was a "stablecoin", a cryptocurrency whose value is pegged to the price of another asset and is therefore considered "stable". In the highly volatile and ruthless world of bitcoin and ethereum, these cryptocurrencies are considered safe havens – the most famous of which is Tether – making them attractive to investors. 

The price of stablecoins hardly fluctuates because they are usually pegged to real currencies with low volatility, such as the dollar. But this was not the case with TerraUSD, which was indexed to Luna, the other cryptocurrency created by Kwon. It was the latter that was supposed to ensure the stability of the system, thanks to in-house algorithms.

Ultimately, those algorithms failed, sending the two cryptocurrencies tumbling in May. But back when Kwon was developing them in the late 2010s, algorithmic finesse didn't matter so much. Cryptocurrencies were in vogue among unsuspecting investors, and Kwon's larger-than-life personality made Luna stand out from the competition.

"Do Kwon quickly realised that playing this role [the larger-than-life personality] would make it easier to draw attention to himself and his projects," said tech news site The Verge.

‘I don't argue with the poor’

It was on Twitter that Kwon spent most of his time taking his competitors and detractors to task. When an economist in May 2021 questioned Kwon on how TerraUSD’s algorithms were being used he replied: "I don't argue with the poor." When asked where the hundreds of millions of dollars Kwon claimed to have in reserve to back TerraUSD came from, an investor was told "from your mother, of course”. 

Kwon’s displays of arrogance and odiousness were not just confined to Twitter. A few days before Luna crashed, Kwon was on YouTube declaring that "95% of cryptocurrency projects are going to crash” before adding that this "will be entertaining to watch".

The comments gave Luna followers the impression that Kwon believed he was above the rest of the crypto pack and that he was fighting tooth and nail for their interests against an outside world that just didn’t get it, reported the New York Times. 

“It's a cult mentality with a leader who has a larger-than-life personality and at the same time he has a confidence that is very seductive," Brad Nickel, a podcast host specialising in cryptocurrencies, told The New York Times.

Kwon's most fanatical admirers even called themselves the "Lunatics”, naming themselves after Luna. One of them, Mike Novogratz, the CEO of the investment fund Galaxy Investment Partners, even got a Luna tattoo. 

Lives ruined 

But it all started to unravel when Do Kwon tried to attract new followers by offering a programme that paid Terra holders an astronomical 20 percent interest per year.

The popularity of Luna/Terra exploded, especially in South Korea, where the offer attracted tens of thousands of large and small-time investors. As more and more TerraUSDs circulated, the value of the currency plummeted and the algorithmic mechanism designed to stabilise its price failed to work. The whole thing imploded in a matter of days. 

Many small investors got caught up in the fallout.

"I was trying my best to always put some money aside, but with inflation in South Korea, traditional bank investments weren't paying off," Ji-hye, a South Korean office worker who was lured by the prospect of a 20 percent return, told the Financial Times. "At first, I saw the value of my savings skyrocket, so I bet everything on Luna. And in the end, I lost everything.” 

In South Korea, the shockwaves from Luna's collapse were so great that online searches for Mapo Bridge – a bridge in Seoul known as one of the most popular places to commit suicide – skyrocketed, the Financial Times reported. Police had even increased patrols around the area during summer.

It quickly turned into a debacle for the entire cryptocurrency industry. "Terra's disruptions have accelerated the fall in prices," Nathalie Janson told FRANCE 24 in May. "Overall, $40 billion has been wiped off the face of the cryptocurrency world as a result of this scandal." 

This did not however discourage Kwon. Shortly after his company’s resounding failure, he was back at it again, proposing the creation of Luna 2 on the proviso that investors would again lend him money. This time, though, the “lunatics” have not followed their guru.

[don-lichterman]

Red Hot Inflation Tumbles Ethereum By 5%

Red Hot Inflation Tumbles Ethereum By 5%

The US consumer price index, a comprehensive indicator of prices for goods and services used in daily life, increased to 9.1% over the previous year. The traditional and cryptocurrency markets have collapsed as a result of this announcement. Prices for the two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), fell by almost 5%. It didn’t plummet as much, though, as was…

[recentlyheardcom]

Bitcoin Price Takes a 5% Hit: Can Bulls Save The Week?

Bitcoin worth failed to start out a contemporary enhance above the $62,850 resistance zone. BTC began one other decline and tumbled 5% to check $58,000. Bitcoin began a contemporary decline and traded beneath the $60,000 zone. The value is buying and selling beneath $61,500 and the 100 hourly Easy transferring common. There’s a connecting bearish development line forming with resistance at…

[market-news-24]

The world of cryptocurrency can be both fascinating and intimidating. Bitcoin, the granddaddy of them all, has captured the imagination of investors worldwide. But with its wild price swings, it's natural to wonder: Should I invest in Bitcoin? And if you do, what can you expect from a $1000 investment in 2025? Buckle up, because we're about to embark on a Bitcoin odyssey, exploring the potential future of your investment. Understanding Bitcoin: A Digital Gold Rush? Bitcoin is a decentralized digital currency. Unlike traditional currencies controlled by governments, Bitcoin operates on a peer-to-peer network, free from central authority. Transactions are recorded on a public ledger called the blockchain, creating a transparent and secure system. [ad_1] [ad_2] Think of it as digital gold – a scarce asset with limited supply (only 21 million Bitcoins will ever exist). This scarcity, coupled with growing adoption and potential as a store of value, has fueled Bitcoin's meteoric rise. But here's the catch: Bitcoin is incredibly volatile. Its price can fluctuate dramatically in a single day, making it a risky investment. A Glimpse into Bitcoin's Past: A Rollercoaster Ride Let's take a quick trip down memory lane to understand Bitcoin's historical performance. In 2010, one Bitcoin could be bought for a mere fraction of a penny. Fast forward to 2013, and its price skyrocketed to over $1,000! However, a crash followed, sending the price tumbling down. The story doesn't end there. In 2017, another price surge saw Bitcoin reach nearly $20,000, before experiencing another correction. As of today (June 30, 2024), Bitcoin hovers around the $40,000 mark. [ad_1] [ad_2] This historical volatility highlights the inherent risk involved in Bitcoin investment. Projecting the Future: Predicting the Unpredictable So, what can you expect from your $1000 Bitcoin investment in 2025? The truth is, nobody has a crystal ball. However, we can explore some possibilities based on various factors that might influence Bitcoin's price. Factor 1: The Halving Cycle Bitcoin's supply is released in a fixed pattern. Every four years, the number of Bitcoins rewarded to miners (who verify transactions) gets cut in half. This event, called the halving, is believed to impact Bitcoin's price due to reduced supply. The last halving occurred in May 2020. Historically, halving events have been followed by significant price increases. If this pattern holds true, the price of Bitcoin could potentially rise in the coming years, impacting your 2025 investment. Factor 2: Institutional Adoption The involvement of major financial institutions in the cryptocurrency market can significantly impact Bitcoin's price. As more institutions explore Bitcoin as an investment asset, its value could potentially rise due to increased demand. [ad_1] [ad_2] Recent years have witnessed a growing interest from institutional investors in Bitcoin. If this trend continues, it could positively influence the price in 2025 and beyond. Factor 3: Regulatory Landscape Government regulations surrounding cryptocurrency can also play a role. Stringent regulations could dampen investor sentiment and potentially decrease Bitcoin's price. Conversely, clear and supportive regulations could create a more stable environment, potentially attracting more investors and driving the price up. The regulatory landscape for cryptocurrency is still evolving. The future of regulations could significantly impact your Bitcoin investment in 2025. Factor 4: Technological Advancements The underlying technology of Bitcoin, blockchain, is constantly evolving. New developments and wider adoption of blockchain technology could potentially increase Bitcoin's value and legitimacy, positively impacting your 2025 investment. [ad_1] [ad_2] Factor 5: Broader Market Trends The overall health of the global financial market can also influence Bitcoin's price.

Economic downturns could lead investors to seek safe havens, potentially driving the price of Bitcoin up. Conversely, economic prosperity could make investors more risk-averse, potentially pushing the price down. It's important to consider these various factors when evaluating your Bitcoin investment. Possible Scenarios for 2025: Boom or Bust? Here are three hypothetical scenarios for your $1000 Bitcoin investment in 2025, based on different market conditions: Possible Scenarios for 2025: Boom or Bust? (continued) [ad_1] [ad_2] Scenario 1: Bull Run (100% Growth) Imagine a scenario where all the positive factors align. Continued halving cycles reduce supply, institutional adoption explodes, regulations become favorable, and technological advancements solidify Bitcoin's position. In this bull run scenario, your $1000 investment in 2024 could potentially reach $2,000 by 2025, doubling your initial investment! However, this is a highly optimistic scenario, and past performance is not a guarantee of future results. Scenario 2: Steady Climb (25% Growth) A more realistic scenario might involve moderate growth. The halving cycle might have a positive impact, but not as dramatic as the bull run. Institutional adoption continues, but at a slower pace. Regulations remain somewhat unclear, but not restrictive. Technological advancements provide a minor boost. In this steady climb scenario, your $1000 investment could reach $1,250 by 2025, representing a respectable 25% growth. Scenario 3: Bear Market (-50% Decline) Unfortunately, a bear market scenario is also a possibility. Stringent regulations could stifle adoption. The broader market experiences a downturn, causing investors to flee riskier assets like Bitcoin. Technological advancements experience setbacks. In this bear market scenario, your $1000 investment could shrink to $500 by 2025, representing a significant loss. Here's a table summarizing these scenarios: Market PerformanceYour 2025 InvestmentBull Run (100% Growth)$2,000Steady Climb (25% Growth)$1,250Bear Market (-50% Decline)$500 Remember, these are just hypothetical scenarios. The actual value of your Bitcoin investment in 2025 could be higher or lower. Investing in Bitcoin: A Word of Caution Before you jump on the Bitcoin bandwagon, here are some crucial things to consider: [ad_1] [ad_2] High Volatility: Bitcoin's price swings can be dramatic. Be prepared for potential losses and invest only what you can afford to lose. Uncertain Regulations: The regulatory landscape for cryptocurrency is still evolving. Unfavorable regulations could impact Bitcoin's price. Not a Guaranteed Investment: There's no guarantee that Bitcoin's value will increase. It's a speculative investment, and you could potentially lose your entire investment. Here are some additional tips for investing in Bitcoin: Do your research: Understand the technology behind Bitcoin and the risks involved before investing. Invest for the long term: Bitcoin is a volatile asset. Don't expect to get rich quick. Diversify your portfolio: Don't put all your eggs in one basket. Spread your investments across different asset classes. Start small: Consider investing a small amount initially to test the waters before committing a larger sum. The Final Frontier: Is Bitcoin Right for You? The decision of whether or not to invest in Bitcoin is ultimately a personal one. By understanding the potential benefits and risks, you can make an informed decision that aligns with your financial goals and risk tolerance. Bitcoin can be a fascinating and potentially rewarding investment, but it's not for everyone. If you're comfortable with volatility and have a long-term investment horizon, Bitcoin could be a valuable addition to your portfolio. However, if you're risk-averse and need your money readily available, Bitcoin might not be the right choice for you. [ad_1] [ad_2] Remember, investing is a journey, not a destination.

Make informed decisions, and stay informed about the evolving world of cryptocurrency!

[blockchainfeed]

Bitcoin has plummeted to under $64,000, its lowest level since mid-May, driven by heightened selling pressure in the market. BTC has mostly traded downwards or sideways after exceeding the $70,000 mark at the start of the month. Since then, the flag #Blockchain #Crypto

[digicloudm]

Watch these BTC price support levels as Bitcoin tumbles below $64K

Bitcoin (BTC) neared six-week lows on June 21 as traders warned that buyers had yet to step in. BTC/USD 1-hour chart. Source: TradingView BTC price analysis: Bulls remain on back foot Data from Cointelegraph Markets Pro and TradingView tracked another day of problematic BTC price action as BTC/USD hit $63,356 on Bitstamp. Down 3.7% week-to-date and 5.75% in June overall, the pair struggled to…

[virtualcurrencyspace]

Bitcoin Falls To $65K

What looked like prime time for crypto assets on softening inflation data has turned into an ugly week with bitcoin (BTC) tumbling to its weakest price in four weeks on Friday.

BTC tumbled more than 2% in an hour to $65,100 during the U.S. trading session from around the $67,000 area. The leading crypto was down 7.5% over the past seven days.

https://www.coindesk.com/markets/2024/06/14/bitcoin-plunges-to-65k-altcoins-bleed-10-20-as-week-turns-ugly/amp/

[mariacallous]

The fallout from the collapse of FTX just won’t stop—and now it’s threatening one of crypto’s most important institutions. On November 16, Genesis Global Capital’s lending unit suspended withdrawals due to “unprecedented market turmoil.” Now, the firm is seeking emergency funding of at least $500 million to ensure it has enough cash on hand to pay its customers. All the while, the crypto industry watches nervously.

On November 21, Genesis said it had “no plans to file for bankruptcy imminently,” but it has since appointed an external party to advise on its financial predicament. Such moves have done little to calm twitchy customers. Halting withdrawals has been the precursor to multiple previous crypto collapses this year, including at FTX and Celsius. Genesis did not respond when asked to confirm whether bankruptcy was under consideration.

If Genesis were to fold, it would deliver another gut-punch to an industry already reeling from the fall of FTX, one of its most highly regarded companies. If an institution the size and standing of Genesis is vulnerable, can trust be placed in the stability of any crypto firm? Yes, the industry is expected to survive the ordeal, but the days of minimal oversight, generous funding, and rapid expansion are over.

The impact from the potential fall of Genesis should not be underestimated. It might not be as well known as FTX and other exchanges, but it’s crucial to the day-to-day operations of the crypto world. In 2021 alone, the company issued $131 billion in loans and set up $116.5 billion in trades; the Financial Times has described it as the Goldman Sachs of crypto. To fund these loans, Genesis borrows from individuals and institutions that own large quantities of coins, also known as whales, who receive a cut of profits in return. 

While the market was hot, so was Genesis. But as the price of crypto tumbles, and trust in large crypto companies bleeds away, Genesis risks becoming the latest example of a crypto giant failing to prepare for the worst. Not only might customers lose their money, but the collapse of an intermediary like Genesis threatens to “set crypto back several years,” says Brad Harrison, founder of decentralized lending protocol Venus. That’s because of how Genesis enables the flow of money between organizations—which is essential to the functioning of any industry.

When it launched in 2013, Genesis was the first over-the-counter bitcoin trading desk—somewhere traders could go to buy and sell large quantities of coins. But the company is now the largest crypto lender too, as well as the backbone for yield farming services provided by exchanges, which let customers earn interest on their holdings.

Harrison says Genesis has worked with many of the largest crypto organizations over the years, and it has wound its way into practically all corners of the cryptosphere. “It’s a household name.”

Genesis has been in trouble since July, when the hedge fund Three Arrows Capital (3AC) collapsed, taking with it $1.2 billion of the $2.36 billion it had borrowed from the firm. If someone defaults on their mortgage, the bank can seize the property to recoup the full value of the loan, but in this case Genesis didn’t have that option, because only part of the loan was secured against 3AC assets.

To ensure Genesis wasn’t hamstrung by the loss, its parent company, Digital Currency Group (DCG), bailed it out. But in the aftermath, Genesis cut 20 percent of its workforce to reduce costs and Michael Moro, its longtime CEO, stepped down.

Genesis again found itself on the wrong side of a collapse earlier this month; when FTX filed for bankruptcy on November 11, the firm lost $175 million stored with the exchange. Again, DCG intervened, providing a cash injection of $140 million.

But despite multiple DCG bailouts, Genesis has failed to escape the FTX fallout. Samson Mow, a prominent crypto pundit and ex-chief strategy officer at crypto infrastructure firm Blockstream, says the brokerage is struggling to fund a surge in the number of customers asking to redeem their crypto. This led to the suspension of withdrawals, which threatens to worsen the prevailing crisis of confidence and increase the likelihood of a rush on other lenders (say, BlockFi or Voyager Digital)—and so the contagion spreads.

But Mow says it’s important to understand that this is a liquidity problem, not a solvency problem. In other words, Genesis has enough assets to pay its debts, they’re just not readily available in cash form. For this reason, a bankruptcy “seems unlikely,” says Mow.

DCG also sought to play down the situation on Twitter, saying that the decision to suspend redemptions and stop issuing fresh loans was a “temporary action,” and that the problem is confined exclusively to the Genesis lending division, which means the trading and custody units will continue to operate as normal.

Nonetheless, the situation is serious enough for Genesis to seek additional funding, with crypto exchange Binance and private equity firm Apollo Global Management tapped as potential investors.

The attempt to secure funding has been unsuccessful thus far, reports suggest, partly due to concern over the financial relationship between Genesis and other DCG-owned entities. Of the $2.8 billion in outstanding loans on the Genesis balance sheet, roughly 30 percent are made to either DCG or its subsidiaries, but inter-company loans are being treated with particular suspicion right now because of their central role in the FTX collapse.

Barry Silbert, CEO of DCG, told investors that inter-company loans of this kind are nothing out of the ordinary. “We have weathered previous crypto winters, and while this one may feel more severe, collectively we will come out of it stronger.”

Yet, for all its conviction, Silbert’s rallying cry has not halted speculation. Burned recently by false assurances from FTX founder Sam Bankman-Fried—who tweeted “FTX is fine” on November 7, just days before the firm collapsed—crypto investors are bracing for a bankruptcy at Genesis, too.

One of the consequences of a potential collapse is already playing out. After withdrawals were halted, crypto exchange Gemini, whose yield farming product sits on top of Genesis, announced its Earn customers would no longer be able to access their funds.

On November 22, the exchange explained it was working to “find a solution,” but until then, $700 million worth of customer funds would remain locked up. If Genesis were to go bankrupt, some of these funds may never be returned, just like at FTX—and it's possible that customers of other Genesis-linked exchanges might suffer the same fate.

The silver lining is that Genesis deals predominantly with institutional customers: family offices, high-net worth individuals, hedge funds, and the like. So in the event of a bankruptcy, although confidence in the industry may be torn to shreds and knock-on effects may put other businesses in financial distress, the immediate impact on regular people would not be as severe as with FTX. 

Max Galka, founder of blockchain analytics company Elementus, says that blockchain data suggests the company is also "an order of magnitude less intertwined than FTX” with large industry players. Although there will be “ripples,” a collapse is unlikely to have the same cascading effects.

The potential collapse of Genesis wouldn’t be “nearly as broad,” says Joe Flanagan, cofounder of the decentralized lending protocol Maple, because the financial shortfall is much smaller than at FTX. He also says bankruptcy proceedings would likely be more straightforward as a result of the clear demarcation between internal divisions at Genesis, which means the troubled lending division could be splintered off. 

The greatest impact is likely to be felt in the crypto lending market itself; in the same way the collapse of FTX has drawn attention to the advantages of decentralized exchanges, the Genesis situation has the potential to drive people towards decentralized lenders.

Instead of relying on an intermediary to lend out their cryptocurrency in a responsible way and to keep enough cash on hand to meet withdrawals, decentralized alternatives let customers see exactly what’s happening to their crypto. This is an example of what’s known as decentralized finance, or DeFi.

Most decentralized lenders also exclusively support overcollateralized loans—that’s to say, borrowers are required to lock up assets with a greater value than those they are borrowing—so the chance of default is low. Genesis, by contrast, is reported to offer riskier, unsecured loans, which might have contributed to its current financial difficulties.

Harrison describes lenders like Genesis as “black boxes” that offer none of the transparency of the DeFi approach. He says there are two potential outcomes to the current situation: Either the “DeFi ethos” around transparency and collateralization will have to be adopted by centralized lenders, or decentralized lenders will begin to steal customers away. Galka goes as far as to say that “crypto lending by centralized services is essentially done,” as a result of what’s happened to lenders like Genesis.

Meanwhile, the FTX fallout continues. Although the effects on Genesis and other companies tied up with FTX (like BlockFi and Voyager Digital) are beginning to take shape, it’s possible that many more are quietly sitting on significant losses, Galka says. “It may take a year or more for things to shake out before we really know just how far the contagion has spread.”

[coinguitar]

Bitcoin Price Slips 2% Amidst Large Mt. Gox Wallet Transfer

The price of Bitcoin (BTC) took a tumble on May 28th, dropping roughly 2% following a series of large transactions from wallets associated with the defunct cryptocurrency exchange Mt. Gox. These transactions, totaling over 107,000 BTC (worth nearly $7.3 billion at the time), moved funds to an unknown wallet, raising questions and sparking concerns within the crypto market. Blockchain analysis…

[coinmystique]

As Bitcoin's risky motion continues, current market actions have seen the pioneering cryptocurrency tumble under the essential $27,000 help stage. This downward momentum has left merchants and traders with an crucial query: Is that this only a transient dip or a protracted bearish section? May this current downturn doubtlessly provide a golden alternative for these seeking to purchase the dip? Bitcoin Value Delving into the present statistics, Bitcoin is presently priced at $26,690, marking a 1.5% decline prior to now 24 hours. Regardless of this setback, Bitcoin retains its eminent place at #1 on CoinMarketCap, boasting a considerable stay market capitalization of $520 billion. With its circulating provide edging near 19.5 million BTC cash, it is essential to look at the broader market context and indicators to find out the longer term trajectory of this crypto titan.Fed's Curiosity Fee Determination Could Affect BTC ValueBitcoin's worth has continued to stay above $26,900. That is primarily attributable to Federal Reserve Chair Jerome Powell's current announcement of potential rate of interest hikes in case the financial system stays robust. The central financial institution has additionally confirmed that its present rate of interest vary is per market forecasts.The US Federal Reserve (Fed) lately determined to take care of the rates of interest at 5.25-5.5%, which got here as a aid to the worldwide markets. Nevertheless, they hinted at the potential for a charge hike by the top of 2023. This information impacted the crypto market, with Bitcoin and Ethereum remaining comparatively secure for the previous 24 hours. It is price noting that Fed Chair Jerome Powell's point out of a possible charge hike later this 12 months had a noticeable impression in the marketplace dynamics.Bitcoin's market sentiment has turned impartial in September, indicating cautiousness amongst traders.Arthur Hayes Speculates on Chinese language Capital Flight and BitcoinIn keeping with former BitMex CEO Arthur Hayes, X (previously Twitter) could also be experiencing an outflow of capital from China. That is because of the Chinese language yuan (CNY) dropping by 15% towards the US greenback (USD) this 12 months. This has raised issues about China in search of different investments, similar to Bitcoin, to hedge towards financial uncertainty.Hayes consulted with China professional Andrew Collier, who analyzed China's export earnings and the hole in overseas reserves. It was found that roughly $520.85 billion is unaccounted for, suggesting that this cash could also be invested in numerous belongings, together with cryptocurrencies like Bitcoin. Hayes additionally famous the correlation between CNY and the Japanese yen (JPY), which may additional impression capital leaving China.This information may doubtlessly have a optimistic impression on the value of Bitcoin (BTC). If a major quantity of capital flows into cryptocurrencies like Bitcoin from China as a hedge, it may improve demand and its worth. Nevertheless, market reactions could fluctuate relying on the precise motion of funds.Bitcoin Value Prediction Analyzing the technical panorama, Bitcoin is presently buying and selling with pronounced volatility, having already breached the crucial help on the $26,600 mark. This stage beforehand acted as a resistance; nevertheless, subsequent candle closures, significantly on the 4-hour chart, above this threshold fortified it as a strong help for BTC.But, amid a strong US dollar, Bitcoin commenced a descent. Presently, a bearish engulfing candle has materialized, prompting a bearish breakout for BTC. This rupture of the $26,650 mark has left Bitcoin susceptible to the quick help stage of $26,300. An extra decline may check the next help located round $26,000.On the 4-hour timeframe, Bitcoin's trajectory has dipped under the 50-day exponential transferring common. Moreover, it has damaged via an upward channel, which beforehand constrained its downward mobility. Bitcoin Value Chart - Supply: TradingviewPublish this breach, BTC's subsequent line of defense is anticipated across the $26,000 mark. Ought to the bearish momentum persist, BTC costs could be pushed in direction of the $25,511 area. Conversely, a bullish resurgence surpassing the $27,000 threshold may propel Bitcoin in direction of the $27,500 stage. For now, the $27,000 mark, underscored by the 50-day exponential transferring common, is a pivotal level for BTC. A closure under this could precipitate a continued bearish pattern for Bitcoin.Prime 15 Cryptocurrencies to Watch in 2023Get forward of the sport on this planet of digital belongings by testing our rigorously curated collection of the highest 15 different cryptocurrencies and ICO tasks to observe for in 2023. Our checklist is compiled by trade consultants from Business Discuss and Cryptonews, so you'll be able to count on skilled suggestions and precious insights to your cryptocurrency investments. Keep up to date and uncover the potential of those digital belongings.Discover The Greatest Value to Purchase/Promote CryptocurrencyCrypto Value Tracker - Supply: CryptonewsDisclaimer: Cryptocurrency tasks endorsed on this article should not the monetary recommendation of the publishing writer or publication - cryptocurrencies are extremely risky investments with appreciable danger, all the time do your personal analysis.

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May 1st 2024 - Crypto Crash? Bitcoin Tumbles as Fears Mount