The largest cryptocurrency, bitcoin, dropped to price levels below $61,000 from highs of over $65,000 within 24 hours. The asset also nearly peaked past $70,000 earlier in the week. This drop comes despite a US jobs report showing that only 144,000 jobs were added in the past month, a factor that should have caused the asset’s price to rise.
News like that often pushes risk assets like stocks and crypto into the green territory. Massive tech stocks also observed losses on Friday, regardless of the news, as the market came to a close. Nasdaq was down by 3.1% on Friday noon, the S&P 500 2.7%, with Amazon (AMZN) leading the bunch by 11% losses and NVIDIA (NVDA) by 5%.
Bitcoin has close to 5% value in the last 24 hours. Other altcoins, including ETH, BNB, and SOL have lost between 4.5% to 7% at the same time. The crypto market’s decline was also caused by events in Japan, with the Bank of Japan raising its interest rates from 0.1% to 0.25%. The Nikkei fell by 5.8% on Friday with the rise in the interest rate.
As that explains the macroeconomic factors weighing down on crypto prices, industry-related occurrences have also pushed coin and token values down. Genesis Trading’s bankruptcy estate moved about 16,600 bitcoins, worth over $1 billion, and 166,300 ETH, worth over $500 million, from the firm’s wallets. With these assets expected to be paid back to creditors, the market’s anxiety rose, stemming from these massive amounts entering supply and creditors dumping the assets after receiving them.
A creditor claimed they already received a part of their payments from Genesis, taking to X to mention, “This morning, after almost two years, I received a small distribution from the bankrupt estate of Genesis Capital. I’m going to hang a photo of it on my wall, as a permanent reminder to minimize and monitor counterparty risk.”
