The World’s largest cryptocurrency by market capitalization is showing growth signs, even amidst what would be considered horrible news for the digital finance market.
On January 20, BTC surged past the $21,000 resistance zone for the second time in a week. That significant rise happened in the last hours of the previous day when $BTC reached that mark around 8 PM EST.
$BTC Price Running
In fact, the asset’s momentum is so strong that at this time of writing, $BTC is nearing the $22,000 mark, currently trading at around $21,850.
The fact that BTC is displaying a favorable momentum in the midst of the bankruptcy of one of the leading crypto lending businesses in the world, indicates that the market is in fact extremely optimistic about the token’s future for 2023.
Differently from the FTX debacle, right now with the indications that the United States Federal Reserve will likely ease up on interest rate raises in 2023 — bitcoin gets a better “fighting chance” against big corporations’ collapses.
Genesis’ lending section filed for Chapter 11 bankruptcy protection in the United States on Thursday, owing creditors at least $3.4 billion after being sunk by a market collapse with exchange FTX and lender BlockFi.
According to the bankruptcy court filings, the firm has liabilities of at least US$ 3.5 billion. Other firms in the crypto industry, such as FTX and Celsius, filed for the same judicial financial protection procedure, which initiates a period of financial reorganization in order to avoid bankruptcy.
No one knows what exactly will be the outcome of the bankruptcy of such a major player in the crypto space, but as of right now, little to no effect has been seen in the market. In fact, bitcoin and Ethereum, the two major currencies, are both going through near 4% gains in the last 24 hours.