The co-founder of BitMEX, Arthur Hayes, believes that Bitcoin will soon crash to $10,000. What can trigger the Bitcoin crash?
The co-founder of the BitMEX exchange, Arthur Hayes, tweeted by attaching a screenshot of a Bloomberg article about the Genesis Bankruptcy. As per the tweet, if Genesis goes bankrupt, Bitcoin could crash to $10,000.
Crypto Community lashes out at Arthur Hayes
The community questions Arthur if he has been accurate with any price targets from the last few months. They call him out for switching from $10,000 Ethereum price predictions to $10,000 Bitcoin price predictions.
The Genesis Bankruptcy
Last week, the lending entity Genesis Global Capitals announced that it has temporarily suspended redemptions and new loan originations due to “abnormal withdrawal requests.” The company has a liquidity crunch due to the default of Three Arrows Capital and the recent collapse of FTX
According to the Bloomberg report, Genesis is trying to raise funding of $1 billion for its lending unit. Genesis may file for bankruptcy if it fails to raise the funding. Recently it is reported that Genesis may cut its capital raise to $500 million.
Can Genesis Bankruptcy Eventually Lead to a Bitcoin Crash to $10,000?
Genesis is owned by the Digital Currency Group that controls one of the largest investment vehicles, The Grayscale Bitcoin Trust (GBTC). It has over $10 billion in assets under management. Chahal Verma, a crypto influencer on Twitter, believes that if Genesis goes down, it can have a much more significant impact on the market than FTX.
The collapse of Genesis will likely impact Grayscale as well. The crypto trader shares his point of view on how Bitcoin can crash below $10,000