[Bitcoin Now] Aftermath of FTX Sends Price Below $16,000... Genesis Trading Bankruptcy Rumors

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] As the fallout from the bankruptcy filing of FTX, one of the world's top three cryptocurrency exchanges, continues, the price of the leading cryptocurrency Bitcoin remains below $16,000.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:42 a.m. on the 22nd, the price of Bitcoin was recorded at $15,808 (approximately 21.43 million KRW), down 2.38% from the previous day.

The price of Bitcoin has been unable to escape a downward trend amid the ongoing impact of FTX's bankruptcy protection filing. Even after the FTX incident, Bitcoin's price, which had been testing support around the $16,000 level, fell below $16,000 for the first time on the morning of the previous day.

The FTX bankruptcy filing has affected the overall cryptocurrency market. According to major foreign media such as Bloomberg, it was reported on the same day that Genesis Trading, a major U.S. cryptocurrency lender, may file for bankruptcy. Genesis Trading reportedly requested new funds from cryptocurrency exchanges such as Binance but was rejected. However, Genesis Trading told Bloomberg, "We have no immediate plans to file for bankruptcy" and "We are continuing constructive talks with creditors." They also stated, "Our goal is to resolve the current situation without filing for bankruptcy."

The fallout has also spread to domestic cryptocurrency exchange Gopax, which supports transactions in Korean won. Gopax suspended withdrawals from its proprietary deposit service product 'Gopay' starting from the 16th. Gopay operates by managing customers' entrusted cryptocurrencies through Genesis Trading, but with Genesis Trading halting new loans and redemptions, customer assets have also been frozen. In response, Gopax announced on its website the previous day that it is "positively discussing liquidity supply with global blockchain infrastructure companies."

The crisis in the cryptocurrency market has also caused related stocks listed on the U.S. stock market to fall sharply. On the 21st (local time), Coinbase, a cryptocurrency exchange listed on the Nasdaq, closed at $41.23, down 8.90% from the previous trading day. Coinbase's stock price has dropped 37.90% over the past month.

Investor sentiment has shown a similar trend to the previous day, remaining unresolved. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose by 1 point to 22 (extreme fear) on the day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.