In today’s briefing:
- No Worry, DCG, Genesis, and Grayscale Won’t Cause Another Crash in the Crypto Market
- The Return of the Bulls
No Worry, DCG, Genesis, and Grayscale Won’t Cause Another Crash in the Crypto Market
- DCG’s subsidiary Genesis is likely to become the next insolvent crypto lender, market fears its failure will lead to the dissolving of Grayscale, which held 3% of bitcoin’s total supply;
- Grayscale is a profitable business with $200 million annual fee income from the GBTC trust, DCG or any new buyer of Grayscale has no intention to dissolve the cash cow;
- Even if Grayscale dissolve, it won’t cause another crash as only $1 billion value of bitcoin may be dumped into the market, only 3.3% of bitcoin daily trading volume;
The Return of the Bulls
- Price Movements: Bullish sentiment has returned to crypto, with BTC up 20% over the past week.
- Market Liquidity: Binance.US’s market share relative to other U.S. exchanges climbed to 15%, a marked increase after dropping to 6% post-FTX.
- Derivatives: BTC open interest fell sharply after a short squeeze caused millions in liquidations.
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