The cryptocurrency market cap has fallen below $800bn for the first time since December 2020, as the scandal surrounding the FTX exchange ruptures confidence in the industry.
The global crypto market cap is now $782.46B, a 1.72% decrease over the last day.
According to coinmarketcap, the total trading volume on crypto markets over the last 24 hours was $65.91B, which makes for a 4.76% increase.
Bitcoin’s (BTC-USD) dominance is currently 38.67%, a decrease of 0.03% over the day and the price of the leading digital asset fell 2% in the past 24 hours to $15,688.
Ethereum (ETH-USD) is slipping towards the psychological $1000 level, with a fall of 3.5% to $1,082 in the past 24 hours.
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On Monday, bitcoin briefly dipped to its lowest level in two years after Bloomberg reported that another digital-asset trading platform, called Genesis, was forced to inform investors that it might have to file for bankruptcy if it cannot immediately raise funds.
After the reports of smoke coming from the distressed crypto-brokerage, investors have begun to shed their bitcoin holdings because of links between Genesis and the Grayscale Bitcoin Trust (GBTC), which is the largest publicly traded bitcoin fund.
There are fears the contagion sparked by the collapse of FTX could spread. Genesis is owned by Digital Currency Group (DCG), which calls itself 'the epicentre of the bitcoin and blockchain industry'. DCG also owns Grayscale Investments, which is the manager of the largest publicly traded bitcoin fund, Grayscale Bitcoin Trust.
Fears are growing that the financial difficulties at Genesis might put DCG in the position of needing to shed its assets, which could affect GBTC and spill over into the bitcoin market.
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The Wall Street Journal also issued a report that cited sources claiming Genesis had approached crypto exchange Binance for financial aid, but Binance decided against it, fearing a conflict of interest down the line.
The price of bitcoin tumbled to $15,615 on Monday after Bloomberg published its report on Genesis, and according to CoinDesk this is bitcoin's lowest level since November 2020.
Speaking to MarketWatch, a representative for Genesis dismissed the company's future was in jeopardy and claimed they were continuing to have “constructive” conversations with creditors.
Genesis said: “We have no plans to file bankruptcy imminently. Our goal is to resolve the current situation consensually without the need for any bankruptcy filing. Genesis continues to have constructive conversations with creditors."
After the collapse of crypto exchange FTX, Genesis suspended customer redemptions.
Yahoo Finance has contacted Genesis to provide comment on the above developments, but has yet to receive a reply.
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