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Most cryptocurrencies are still in the red for today after yesterday’s selloff. People believe that this was caused by cryptocurrency lender Genesis Global Capital filing for bankruptcy.
A bankruptcy filing has been expected for weeks, after the company froze customer redemptions on November 16 following the downfall of major cryptocurrency exchange FTX.
To make things even worse is the fact that the Department of Justice has taken enforcement against Bitzlato, a small Russian crypto exchange. This was announced by several major outlets including in a Tweet by the market intelligence firm Santiment on January 18.
Social mentions of Bitzlato & Department of Justice (Source: Santiment)
Speculation then led to the crypto market leader, Bitcoin (BTC), seeing a price drop of more than 4% as traders feared that the Department of Justice was honing in on something more drastic. As the price of BTC continued its downward move, the rest of the crypto market seemed to follow suit, but crypto prices have been making a mild comeback after the drama.
Bitcoin / Tether US 1D (Source: TradingView)
BTC is one of the cryptos in the red for the day and now trades hands at $20,839.55 after a 2.03% drop in price over the last 24 hours. The crypto also reached a low of $20,541.54 over the same time period. BTC is, however, still in the green by more than 14% over the last week.
In addition, despite its price drop, the crypto king was still able to strengthen against its biggest competitor, Ethereum (ETH), by 1.20%. BTC’s 24-hour trading volume saw a 21.84% increase since yesterday and now stands at $29,897,969,848.
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