Ethereum Sinks 3% After Genesis Bankruptcy Rumors

Ethereum [$ETH] Token on Laptop Keyboard Ⓒ 2023 – Crypto Coin Opps
Ethereum [$ETH] Token on Laptop Keyboard Ⓒ 2023 – Crypto Coin Opps
Ethereum [$ETH] Token on Laptop Keyboard Ⓒ 2023 – Crypto Coin Opps

Recently, the entire cryptocurrency market went through a day of retraction. Ethereum, the world’s second-largest cryptocurrency by market capitalization saw a 3% decrease on January 18.

The asset began the day trading at around $1,582. Throughout the day, it appeared as if Ethereum coin was on its way to another positive day. Around 10 AM Eastern Time, ETH reached a new recent high of $1,599.18, only a couple of cents away from $1,600.

Ethereum Price Swing

However, as soon as the most recent news surrounding the crypto lender Genesis broke, ETH plummeted to $1,512. Meaning that in a matter of minutes, the asset lost nearly 6% of its value.

The good part of that story is that buyers and holders refused to let the price down from the $1,500 support. That zone indicates a “make or break” zone for Ethereum, and holding on to it was indeed a win for ETH optimists.

What is Happening With Genesis?

According to recent reports, the cryptocurrency lender Genesis, the official lender of the major digital finance group DCG, is in the midst of bankruptcy.

As reported by CryptoCoinOpps just days ago, the company is going through a lot of financial difficulties, to the point of having to fire 30% of its staff.

Today, reports indicate that the company is already in negotiations for a bankruptcy filing. Since the FTX collapse, Genesis and its parent company DCG faced serious financial pressure, linked to the collapse of FTX-related hedge fund Three Arrows Capital also collapsing.

If the bankruptcy filing really goes through, the crypto market could go for another ride. However, so far, Ethereum is holding on to the $1,500 resistance.

In addition, the most recent news from the federal reserve indicates that recent negative pressure from the Federal Reserve’s interest raises is about to get slightly lighter in 2023, an indication that this time, the crypto market will be a little stronger to face another cataclysmic event.

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