Bitcoin Goes Through a 2% Retraction Following Potential Genesis Bankruptcy

Bitcoin [$BTC] Token on Laptop Keyboard Ⓒ 2023 – Crypto Coin Opps
Bitcoin [$BTC] Token on Laptop Keyboard Ⓒ 2023 – Crypto Coin Opps
Bitcoin [$BTC] Token on Laptop Keyboard Ⓒ 2023 – Crypto Coin Opps

After surpassing the $21,000 mark a couple of days ago, bitcoin just went through a significant retraction.

Today, on January 18, the world’s largest cryptocurrency by market capitalization lost about 2.2% of its value. The asset started the day at around $21,155. Throughout the day, bitcoin went through a series of retractions and is currently trading at the $20,800 margin.

This indicates that the asset found a stronger resistance around the $21,000 zone than expected. However, the retractions were not strong enough to tank the token away from that desired zone.

The selling pressure grew by the end of the day, mostly related to recent reports of another major crypto company on the verge of bankruptcy.

Genesis Bankruptcy Rumors

Likely the biggest reason for BTC to go through a nearly 3% retraction on January 18 is the recent reports surrounding Digital Currency Group, one of the biggest and most important companies related to bitcoin and crypto in the world.

Recent reports from several major news outlets indicate that the financial group’s official lender “Genesis Global Capital” is currently at risk of closing down completely.

In the midst of a liquidity crisis, Digital Currency Group’s bitcoin lending subsidiary has been in discreet discussions with numerous creditor parties. As previously reported on January 6, Genesis has been facing a lot of financial difficulties in the recent past, and apparently, even the recent market growth was not enough for saving the company from bankruptcy.

The likelihood of that happened has the potential to cause another market crash in the crypto space. This time, however, digital assets are a little more secure than they were during the FTX collapse. Pressure from the FED interest raises is finally slowing down, meaning that there is still room for hope that, in the case of an unfortunate Genesis bankruptcy, bitcoin and other cryptos will be able to hold on without major losses.

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