‘Ready To Run’—Crypto Geared Up For $10 Billion Earthquake As Bitcoin, Ethereum, BNB, XRP, Cardano, Dogecoin, Polygon, Solana Price Rise
BitcoinBTC and other major cryptocurrencies have surged higher this week, adding nearly $200 billion to the combined crypto market (with some bets, the rally is just getting started).
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The bitcoin price is up 20% since this time last week, climbing above $20,000 per bitcoin for the first time since the shocker on the FTX exchange in November. EthereumETH and other major cryptocurrencies BNBBNB, XRPXRP, cardano, dogecoin, polygon and solana have also rallied – although some smaller coins are leaving them in the dust.
Now, as traders and investors cheer bitcoin’s rally, the crypto market is poised for sprawling $10 billion crypto giant Digital Currency Group (DCG) to begin offloading assets following problems at crypto lender Genesis and a devastating regulatory lawsuit.
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DCG’s Genesis froze customer withdrawals in November in the wake of FTX’s collapse to avoid bankruptcy and reportedly owes its creditors more than $3 billion.
The Securities and Exchange Commission (SEC) this week accused Genesis of offering unregistered securities through a program run with crypto exchange Gemini that promised investors high interest rates on deposits.
Genesis and Gemini circumvented “disclosure requirements designed to protect investors,” SEC Chairman Gary Gensler said in a statement. Last year, the SEC reached a $100 million settlement with now-bankrupt crypto lender BlockFi.
DCG, which also owns crypto media outlets Coindeskinvestment manager Grayscale, bitcoin miner Foundry and crypto exchange Luno have begun exploring selling some of their assets to raise cash, it was reported this week by Financial Times.
Grayscale, the manager of the world’s largest bitcoin fund, has seen the share price of Grayscale Bitcoin Trust (GBTC) crash well below the value of the underlying bitcoin in recent months as investors worry about its future.
This week, tron founder and crypto entrepreneur Justin Sun told Reuters he would be willing to spend up to $1 billion to buy some of DCG’s assets, “depending on their assessment of the situation.”
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Despite problems for DCG and fears swirling around the world’s largest crypto exchange Binance, patient bitcoin and crypto investors hope that this week’s rally will mark the end of the crypto winter that has gripped the bitcoin and crypto market for more than a year.
“The crypto winter is thawing amid growing signs that inflation is beginning to slow,” Nigel Green, crypto investor and CEO of financial advisory firm deVere Group, said in an emailed statement.
“Obviously, the crypto market won’t go in a straight line – no market ever does – but we expect the bears to hibernate and the bulls to be ready to run. We’re technically still in a bear market, but the signs are that the bulls are starting to take back control.”
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