Why Bitcoin And Ethereum Prices Dropped
The cryptocurrency business lost a lot of market capitalization over the weekend as prices dropped. Bitcoin, the largest cryptocurrency by market value, dipped below $60,000 on Saturday, August 3. Ethereum, the second-largest cryptocurrency, fell below $3,000 to $2,860. Most other coins instantly turned crimson.
Crypto values may swing substantially due to several causes. Price movements are usually caused by market responses to recent news. Recently, failed crypto lender Genesis Global Capital's repayment plans have caused price drops.
Genesis moves $1.5B in crypto
After three years of reorganization, insolvent crypto lender Genesis Global Capital is repaying creditors. Bloomberg reports that the lender has begun distributing $4 billion in cryptocurrency and fiat currencies to its debtors.
Bitcoin creditors will get 51.28%, Ethereum creditors 65.87%, and Solana creditors 29.58%.
The crypto market is worth $2.1 trillion. TradingView chart
Genesis traded over $1.5 billion in Bitcoin and Ethereum on Friday, causing market instability. Arkham Intelligence's on-chain data shows the corporation transferred $1.5 billion, including 16,600 BTC ($1.1 billion) and 166,300 ETH ($521.1 million). Noted billionaire Mark Cuban got $19.9 million in Ethereum repayments.
Many investors appeared to respond to the expected infusion of fresh money by dumping their holdings, which lowered the prices of many struggling cryptocurrencies. Repaid creditors cashing out their digital assets after three years added to selling pressure and the price reduction.
The bitcoin market fell 5.7% in 24 hours to $2.15 trillion. As said, Bitcoin plummeted below $60,000 and Ethereum below $2,900.
Genesis Global Capital is not the first failed crypto business repaying creditors. The bankrupt Bitcoin firm Mt. Gox has been repaying creditors for weeks. As debtors repay, the market may respond to substantial money changes.
