
Bitcoin & Crypto | Monetary Policy & Inflation | US
Bitcoin & Crypto | Monetary Policy & Inflation | US
Big news: Genesis Trading, one of the biggest cryptocurrency lenders, filed for Chapter 11 bankruptcy protection, making it the latest victim of the FTX fallout. Notably, it is estimated the company listed over 100,000 creditors and owes over $3bn, including $760mn to crypto exchange Gemini (founded by the Winklevoss twins).
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.
Big news: Genesis Trading, one of the biggest cryptocurrency lenders, filed for Chapter 11 bankruptcy protection, making it the latest victim of the FTX fallout. Notably, it is estimated the company listed over 100,000 creditors and owes over $3bn, including $760mn to crypto exchange Gemini (founded by the Winklevoss twins). Gemini used Genesis as its partner for its yield product, Gemini Earn, which has over 340,000 customers’ funds in limbo as a result of the Genesis debacle. Gemini co-founder, Cameron Winklevoss, revealed Gemini’s intent to pursue direct legal action against Digital Currency Group (DCG), of which Genesis is an independent subsidiary.
Bitcoin and ethereum have proved resilient in response to the news – bitcoin remains close to $21,000 while ethereum sits a touch above $1,550. The story unfolded ever since Genesis halted withdrawals, so the bankruptcy had been somewhat expected. Or, at the very least, it wasn’t a surprise.
As for the performance of our crypto indices, they are all in the green. Our Metaverse Index is up most (+19% WoW) while all other indices are up at least 8%. Our Privacy Index (flat WoW) proved the only exception. The outperformance of the Metaverse Index is likely due to speculation around Apple entering the virtual reality (VR) space as early as spring. Decentraland (MANA) has rocketed +57% WoW in response to the news.
Our DeFi (+75%) and Smart Contract (+75%) indices are most correlated to bitcoin, while our Privacy (+70%) and our Metaverse (+64) indices are least correlated to bitcoin (Chart 3).
On macro markets, bitcoin is positively correlated to the S&P 500 (+21%, Chart 4), the NASDAQ (+34%), oil (+35%), and gold (+15%). Meanwhile, it remains negatively correlated to 10Y yields (-41%).
Here are the indices in more detail:
Spring sale - Prime Membership only £3 for 3 months! Get trade ideas and macro insights now
Your subscription has been successfully canceled.
Discount Applied - Your subscription has now updated with Coupon and from next payment Discount will be applied.