who is next Genesis [Applause]so things are looking difficult Bitcoin has just dropped to its lowest level in two years it followed reports that digital asset brokerage Genesis could be in trouble as of this recording Bitcoin remains under the 16 000 US dollar Mark Genesis global trading temporarily halted withdrawals and redemptions on November the 16th that came after Genesis revealed it had 175 million US Dollars locked in its FTX account then on the 22nd Bloomberg said the potential investors were being warned the company could face bankruptcy if it fails to raise funds Genesis has since denied that telling market watch that constructive conversations with creditors have been underway Justin de Nathan of ambergripo told forecast.
it's hard for prices to Rally while this sort of speculation remains Rife he reckons Bitcoin could stay where it is for a while unless there's something catastrophic that happens on the Genesis and grayscale or or gbtc or dcg so digital currency group side of things um but right now I think we've tested the lows um and people are comfortable with the price where it is now I don't expect any kind of uh ramp up from here anytime soon just because there's really nothing to get enthusiastic about as for whether Genesis can survive Justin points out that it has a billion dollar hole in its balance sheet and it's already been bailed out once this year by its parent company Venture Capital firm.
The digital currency group dcg Genesis is one of the bigger lenders in the crypto space this suffered during the whole uh Luna 3ac Celsius blow up and a lot of people were worried about them then and obviously knowing the links they had with Alameda as a trading entity and even as FTX as an exchange people understandably were looking at Genesis as will they survive this now it seems that they probably won't unless someone steps in and saves them that means those talks Genesis claims are currently engaged in are absolutely vital so we'll be watching of course very very closely indeed another of dcg subsidies though is digital asset manager grayscale shares in its Bitcoin trust are currently trading close to a record discount to the price of the Bitcoin the funds hold Kathy Woods Arc invest has seen an opportunity there buying over three quarters of a million shares in the past 10 days but is that a wise move the one thing I would say that I've been uh saying to people that I talk to when it looks too simple and too good to be true it probably is as in of course yes it's trading at a discount so the obvious thing is you can buy it and you're getting something at a discount my guess is the reason it's priced where it is now is because some people don't agree with that thesis Greg scale has said its Holdings are safe and secure however the company has refused to provide proof of reserves information citing security consent Alias tyrannos of crypto incubator Davian Labs told forecast there are concerns the fund could be in danger the absolute worst case scenario is you know say if gbtc has to unwind then you would have like a cascading effect Downstream like there's like you know there's like a more than several hundred thousand uh Bitcoin singer I've found and then you know if bitcoin price continue to dip that could touch up micro strategies liquidation price as well because they borrowed money to buy Bitcoin so it could even dcg itself be under threat well probably not yet dcg is a very big company and unless they've engaged themselves in fraudulent activity which I don't think they have I think they will be okay but then it's more about them basically servering a limb and letting Genesis fail or finding some kind of solution of last minute their their grayscale Bitcoin uh fund um I think it should be all right basically and even if it isn't I don't think it's a big issue for the space really so where are the markets headed longer term then well igneous says that there are a lot of macro variables at play at the moment we know that of course some of them though are much simpler to understand than the Fallout from ftx's collapse it's holiday season uh people tend to cash out during.
The holiday season because they trade less and then you know uh if you want to go really long-term in crypto terms Chinese New Year this year is much earlier I think January so you would have selling pressure from Asia as well so you know it could be very likely that you know it's just gonna be Fair sentiment red all over until kind of like you know February if the worst case scenario is is to Prevail.
