- Genesis is struggling to raise money for the lending unit.
- The bankruptcy of Genesis could trigger a panic sell-off from BTC holders.
- BTC is currently trading at $15,744.83 after a 1.64% drop in price.
Arthur Hayes, the co-founder of BitMEX, took to Twitter on November 21 to share his concerns about the crypto lending firm Genesis, and the implication this will have on cryptocurrencies, specifically Bitcoin (BTC).
In his post, Hayes added a snippet from Bloomberg stating that Genesis is struggling to raise money for the lending unit. The company then continued to warn its investors that if they fail in their attempt to raise funds, they will have no choice but to file for bankruptcy.
Genesis has been in a liquidity crunch as the company is one of the many victims of the FTX meltdown. The lending platform has spent the last few days seeking at least $1 billion in fresh capital.
Hayes concluded his Tweet with his prediction that BTC could fall to $10k because of this. This is probably due to the fact that the whole crypto market is still recovering from the FTX drama, and a shock like the bankruptcy of Genesis could trigger a panic sell-off from BTC holders in an attempt to save their investment.
Bitcoin / TetherUS 1D (Source: CoinMarketCap)
Data from CoinMarketCap indicates that BTC is currently trading at $15,744.83 after a 1.64% drop in price over the last 24 hours. The crypto market leader was able to reach a high of $16,246.61 and a low of $15,599.05 over the same time period. BTC is also still in the red by more than 6% over the last seven days.
BTC’s 24-hour trading volume currently stands at $33,275,537,893 after a more than 13% increase over the last day.
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