Like the collapse of the Terra ecosystem this spring, FTX's problems could lead to a series of bankruptcies of other cryptocurrency companies. Still, the number of the exchange's creditors is said to exceed the one million mark of people and organisations. Negativity is also coming from calls for stricter regulation of the crypto industry because of the same FTX. What then can we expect from the Bitcoin price this week in this environment?

The next big cryptocurrency bankruptcy

The next problematic link for the whole industry could be the Genesis Trading platform, which is part of the Digital Currency Group (DGC) conglomerate. Last week it halted withdrawals, citing financial difficulties. It is also known that the bankrupt FTX owes Genesis at least $175 million.

Tonight it was revealed that Genesis will be forced to declare bankruptcy if it fails to find the funding it needs. Accordingly, at this point, the collapse of the giant is only a matter of time.

Genesis tweet that the platform has $175 million left on FTX

The problems with Genesis could lead to the collapse of another major DGC member called Grayscale Bitcoin Trust (GBTC). Adding to the tension is the fact that GBTC has previously refused to disclose its financial reserves, citing privacy concerns.

To recap, GBTC is an investment product divided into 1,000 units. The value of each of them roughly corresponds to 1/1000 of the market value of Bitcoin. Recently, however, the difference in price between 1,000 GBTC and 1 BTC has reached more than 43 per cent. This is due to many factors, but it also indicates one thing - there is far less demand for Grayscale investment products than there is supply of units. Naturally, there is no positive to speak of in such an environment.

GBTC’s discount to BTC

BitMEX cryptocurrency exchange CEO Arthur Hayes mentioned his article the day before, which looked at the close ties between Grayscale and the bankrupt Three Arrows Capital (3AC) fund. Genesis and FTX are now known to be in trouble – but can Grayscale withstand another hit of the crypto market crisis?

It’s entirely possible – an opinion held by a cryptocurrency enthusiast under the nickname Stockmoney Lizards. Here’s a quote from his recent Twitter post, cited by Cointelegraph.

GBTC holds about 648,000 BTC. The discount to Bitcoin’s price has reached a record 43 percent, and more and more negative news is circulating around FTX. There is a lot of hysteria in the market and everyone is waiting for Bitcoin over $10,000. Stay calm, the bearish trends are ending in winter!

This is a clear hint that there is supposedly too much panic in crypto right now - which in theory is always the best time to accumulate digital assets. However, as the FTX collapse showed, even the biggest players in the industry can turn to dust in a matter of days. And right now, alas, there is little certainty that Grayscale will not suffer a similar fate. With hundreds of thousands of BTC in the company's reserves, their liquidation could send the Bitcoin chart noticeably lower - and that includes creating panic sentiment.

What happens to Bitcoin next

Until a couple of weeks ago, Bitcoin’s price had been oscillating around the $20,000 mark for a long time, but now it is noticeably lower. And until the coin forms a new bottom, most buyers are unlikely to have enough courage to take a large long position on the asset.

Bitcoin on the scale of the 1-week chart

However, cryptocurrency enthusiast under the nickname Crypto Tony sees a new short-term channel forming for the price of the main cryptocurrency on the 2-hour chart.

Crypto Tony forecast

Another forecast posted on his Twitter page by analyst Axel Kibar. As you can see from his chart, he doesn’t rule out Bitcoin’s value falling all the way down to the $13,000 line.

Axel Kibar’s prediction

By tradition, we remind you that no forecast is completely accurate, which means you should not rely on them completely. So do your own research and rely on your own analysis.

It is important to remember that when Bitcoin does bottom out in this cycle, the cryptocurrency accumulation phase will begin. That is, falling to the final low does not mean a new wave of growth will begin quickly. Previously, we wrote that FTX problems could make this “crypto-zine” a record long.

What will happen to inflation

The sequence of events around FTX has diverted the attention of many from macroeconomics. Meanwhile, the Eurozone has seen its first drop in inflation since May 2020. The Producer Price Index (PPI) in Germany was lower than forecast.

PPI in Germany

The consumer price index (CPI) in the USA also fell.

CPI in the USA

Meanwhile, the Dollar Index (DXY) appears to be moving into a downtrend for the first time since the beginning of this year.

DXY index

This is good news for traditional markets – lower macroeconomic inflation sends a signal that the US Federal Reserve (Fed) will end its continued increase in the base lending rate. Once the rate peaks and starts to decline, markets have a chance for new global growth. This trend should also positively impact Bitcoin in the long term.


We believe that a potential collapse of Genesis could worsen an already bad situation in the cryptocurrency market. After all, it is an important market player on which other companies depend, among others. The only reason to rejoice here is that with each such collapse, the end of the bearish trend is getting closer one way or another.

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