Unfortunately, the 3AC and FTX collapse pushed Genesis into insolvency, meaning that it could not repay its borrowed funds. Thus, Genesis may be forced to liquidate the crypto assets in its wallets in order to pay off its creditors. This course of action may potentially trigger another massive sale of BTC.
This risk highlighted above might be the reason why BTC had not seen strong institutional demand until press time. This was the case especially with the Purpose Bitcoin ETF, which continued to drop despite the recovery it witnessed in January.However, it looked like the same metric had started to pivot at the time of writing, suggesting a positive shift in Bitcoin’s favor despite the aforementioned concerns. The latest exchange flow data aligned with the potential for more downside.
BTC’s exchange inflows outweighed exchange outflows since mid-week, suggesting that there might be more incoming sell pressure than buying pressure.While the conclusion might be sell pressure, it does not necessarily have to be the case. Many Bitcoin holders might move their BTC to exchanges in preparation for a potential selloff.continued to rally despite these concerns. It had breached the $22,100 price range at press time.
This lent credence to the idea that Bitcoin might be in the early stages of the next bull run. Despite this, investors should not throwRead the best crypto stories of the day in less than 5 minutes
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