Riding The Wave News Summary 114
Genesis Claims $5.1B in Liabilities in First-Day Bankruptcy Filing, Bitcoin due new 'big rally' as RSI copies 2018 bear market recovery, & more.
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Genesis Claims $5.1B in Liabilities in First-Day Bankruptcy Filing
Bitcoin due new 'big rally' as RSI copies 2018 bear market recovery
Genesis’ Crypto Trading Arm Is Moving Money Around, a Sign of Normalcy Amid Sibling’s Bankruptcy
U.S. home-loan banks lent billions of dollars to crypto banks: Report
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Genesis Claims $5.1B in Liabilities in First-Day Bankruptcy Filing
Crypto lending firm Genesis held $5.1 billion in liabilities in the weeks following its freeze on withdrawals last November, according to bankruptcy court documents signed by interim CEO Derar Islim.
In his first-day motion in the U.S. Bankruptcy Court for the Southern District of New York, Islim provided a breakdown of Genesis’ financial state heading into its restructuring. Genesis became the latest crypto firm caught up in the immediate fallout of FTX’s implosion, with three of its entities – Genesis HoldCo, Genesis Global Capital LLC and Genesis Asia Pacific PTE. LTD – filing for Chapter 11 bankruptcy protection late Thursday.
“At the same time, Holdco’s corporate parent, Digital Currency Group (DCG), and its various subsidiaries, including DCG International Investments Ltd., were also impacted by the market turmoil and did not have the liquidity to pay back the Company on certain loans, adding pressure to the Debtors’ balance sheets,” Islim said. (DCG is also the parent of CoinDesk.)
Genesis continues to operate most of its non-lending businesses, Islim said. That includes its derivatives, trading and custody wings, all of which are held in separate legal entities that did not file for bankruptcy.
Prior to the collapses of FTX and 3AC, the initial major domino in this crypto death spiral was the implosion of the terraUSD (UST)-luna ecosystem in May, with that algorithmic stablecoin’s demise vaporizing tens of billions of dollars in capital. Genesis now joins BlockFi, Voyager and Celsius and others whose bankruptcy can be traced back to that event.
Bitcoin due new 'big rally' as RSI copies 2018 bear market recovery
According to the latest analysis, BTC/USD will continue to head higher “after some consolidation” thanks to key signals from its relative strength index (RSI).
With the BTC price gains still coming, Bitcoin bulls are feeling increasingly confident despite widespread mistrust of the longevity of the current rally.
For popular trader Crypto Wolf, a key phenomenon now underway sets Bitcoin’s latest recovery apart from all others.
RSI, he noted on Jan. 18, had printed a long-awaited bullish divergence on weekly timeframes — something which has never happened before.
“BTC printed a rare weekly RSI bullish divergence. Never happened in BTC history, a once in a life opportunity,” he summarized on Jan. 21.
RSI is a fundamental gauge used by traders to determine whether an asset is overbought or oversold at a given price. The weekly print has been long in the making, with Cointelegraph reporting on its arrival in advance at the end of last year.
With that, Bitcoin is beginning to repeat the kind of renaissance last seen at the end of its previous bear market in early 2019.
Genesis’ Crypto Trading Arm Is Moving Money Around, a Sign of Normalcy Amid Sibling’s Bankruptcy
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