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Investing.com – Tension remains palpable in the cryptocurrency market as collateral damage from the FTX bankruptcy mounts. The thus spent the day yesterday declining, with a low at $16,400 yesterday afternoon, against nearly $17,000 at the start of the day.
This Bitcoin weakness came on the heels of reports that Genesis Global Capital, the crypto lending arm of Genesis Trading, had paused withdrawals due to liquidity concerns.
FTX Collapse Contaminates Genesis and Gemini, After BlockFi
In a series of tweets, Digital Currency Group (DCG), the parent company of Genesis Trading, directly attributed this situation to the collapse of FTX.
“Today Genesis Global Capital, the lending business of Genesis Trading, made the difficult decision to temporarily suspend redemptions and new lending,” part of the thread read.
“This decision was made in response to the extreme market dislocation and loss of industry confidence caused by the FTX implosion.”
DCG added that its other operations were unaffected, these including Grayscale and its Grayscale Bitcoin Trust (GBTC), the largest institutional Bitcoin investment vehicle.
“The impact is at the level of Genesis’ lending activities and does not affect Genesis’ trading or custody activities,” the company said. “It is important to note that this temporary measure has no impact on the business activities of DCG and our other wholly owned subsidiaries,” she added.
Later, the Winklevoss brothers’ Gemini exchange said it was pausing withdrawals from its interest-bearing Earn accounts following the changes made by Genesis. Genesis is the lending partner for this program.
“We’re working with the Genesis team to help customers redeem their Earn program funds as quickly as possible. We’ll provide more information in the coming days,” Gemini said, adding that the change hasn’t happened. impact on other Gemini products and services.
Also remember that the day before, we learned that the crypto lender BlockFi would be preparing for a possible bankruptcy filing, according to the Wall Street Journal. The cryptocurrency lender had previously halted customer deposit withdrawals and admitted it had “significant exposure” to the now-bankrupt cryptocurrency exchange FTX and its sister trading firm, Alameda Research.
Technical thresholds to watch on Bitcoin
From a chart perspective, Bitcoin is still showing a distinctly negative profile, as evidenced by the daily chart below.
The first supports to consider are last week’s low around $15,600, and the psychological threshold of $15,000. On the upside, the $17,500 zone, then the $18,000/18,200 zone are the first potential resistances to consider.