Crypto bears in control after resistance test

Crypto bears in control after resistance test
Crypto
Ara Zohrabyan
Author:
Ara Zohrabyan
Published on: 21.11.2022 17:43 (UTC)
Post reading time: 1.77 min
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Bitcoin price dynamics didn’t undergo significant changes last week after dramatic collapse the prior week prompted by FTX exchange liquidity problems and subsequent bankruptcy. It is below $16,100 currently after consolidating for one week. A glance at the daily chart reveals bulls failed to reverse the downward momentum as the price fell below the resistance after breaching above it. Bears are firmly in control currently!



Global crypto market is still in doldrums after the crypto exchange FTX collapse while investors are weighing likely scenarios for global recession as Federal Reserve officials reassert the necessity for higher rates for longer period to bring down inflation. Lower than feared US producer prices inflation report last week supported the view inflation is peaking while Genesis Trading halted customer withdrawals after California Finance Regulator suspended crypto lender Salt’s license following FTX’s collapse, and customers continued withdrawing their Bitcoin from crypto exchanges fearing losses due to exchanges exposure to FTX affiliates.

 

California Finance Regulator suspended crypto lender Salt’s license after Salt announced on Tuesday it was pausing customer withdrawals. California's Department of Financial Protection and Innovation (DFPI) said on Wednesday it was suspending Salt’s license for 30 days while it investigates the crypto lender’s decision to pause client withdrawals.

 

The lending unit of crypto investment bank Genesis announced on Wednesday it halted customer withdrawals. The crypto lending unit, known as Genesis Global Capital, serves an institutional client base and had $2.8 billion in total active loans as of the end of the third quarter of 2022. Genesis disclosed that its derivatives unit had about $175 million in locked funds in its FTX trading account. Genesis owner Digital Currency Group (DCG) strengthened Genesis’ balance sheet with an equity infusion of $140 million.

 

Customers continue pulling their Bitcoins from exchanges opting for self-custody as they fear losses in the wake of FTX bankruptcy. The daily withdrawal last Thursday amounted to roughly 26,000 Bitcoin (BTC). It brought the total amount withdrawn since November 7 to more than 220,000 Bitcoin, according to data from Coinglass. This compares to 1.87 million bitcoin on exchanges tracked by Coinglass, the lowest level in at least one year.

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