• Bitcoin has not reacted negatively to the news of Genesis filing for bankruptcy, suggesting that the price of the asset is where it is supposed to be.
• This lack of negative movement from bitcoin could cement the digital asset’s path to the upside in the coming weeks.
• For bitcoin to trigger another downtrend, it would have to be a true market-disrupting event such as a deep pullback from a market correction.
The crypto industry was recently rocked by the news of Genesis, one of the largest crypto lenders in the world, filing for bankruptcy. Despite the potentially negative implications that this news could have had on the price of Bitcoin, the digital asset has not moved as expected. Instead, Bitcoin has remained unfazed by the news and is still trading around the $20,900 level.
This lack of negative movement from Bitcoin suggests that the news of the Genesis bankruptcy was already priced into the price of the asset. This makes sense given that the crypto lender had been exploring its options and considering filing for bankruptcy for quite some time. Therefore, the bias and fear that such news would carry has already been digested by participants in the space.
For Bitcoin, this implies that the price of the digital asset is where it is supposed to be. This in turn, strengthens the support for the current bull rally, and makes it less likely that a fall below $20,000 could be triggered by a market correction or other disruptive event. Consequently, this could mean that Bitcoin is on its way to the upside in the coming weeks.
The lack of negative effect on the price of Bitcoin in response to the news of the Genesis bankruptcy indicates that the asset is well-positioned for further growth. This could be a positive sign for investors, as it suggests that the asset could be in for a period of sustained growth in the near future. While of course, nothing is guaranteed in the cryptospace, it is clear that Bitcoin is in a strong position at the moment and could be well-positioned for further growth in the near future.