Bitcoin’s Price Continues to Fall as Genesis Distributes $4 Billion to Creditors
On Saturday, Bitcoin experienced a decline of more than 4%, dropping below $60,000 as the market faced increased selling pressure.
This slump coincided with the completion of restructuring by the bankrupt crypto firm Genesis Global.
Genesis Global has finalized its bankruptcy reorganization and begun distributing approximately $4 billion in cryptocurrencies and cash to its creditors. This distribution includes payments to creditors holding Ethereum (ETH) and Solana (SOL) as well.
The company announced that it would not cap recoveries at the petition date value. Instead, creditors are set to recover an average of 64% of their claims in-kind. Specifically, Bitcoin creditors will see a 51.28% recovery, Ethereum creditors 65.87%, Solana creditors 29.58%, and other altcoin creditors 87.65%. Creditors holding US dollars and stablecoins will receive full recovery in cash.
READ MORE: Bitwise CIO Predicts Major Institutional Investment in Crypto ETFs This Year
Genesis also established a $70 million litigation fund, which includes $26 million in Bitcoin, $13 million in ETH, and $31 million in USD. Recent reports reveal that Genesis has moved 16.6k Bitcoin (approximately $1.1 billion) and 166.3k ETH (about $521.1 million) to settle debts, with notable figures such as Mark Cuban receiving $19.9 million in ETH.
Bitcoin’s price has fallen nearly 10% over the past week, impacting the broader digital asset market. After reaching a high of $69,000 earlier in the week, Bitcoin fell to around $60,000 by Saturday morning.
Additionally, Bitcoin ETFs experienced significant outflows, with a total of $237 million withdrawn on August 2. While some funds like BlackRock’s IBIT saw inflows, others like Fidelity’s BTC ETF and Grayscale’s BTC ETF reported substantial outflows. The total net assets for Bitcoin ETFs currently stand at $57.2 billion.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
