Genesis Moves $1.5B in Crypto: Potential Impact on Ethereum Prices

Genesis Trading’s $1.5 Billion Crypto Transfer: Impact on Ethereum Prices

Genesis Trading has transferred $1.5 billion worth of Bitcoin and Ethereum as part of bankruptcy repayments, causing fluctuations in ETH prices. This transaction includes at least 32,256 BTC and 256,775 ETH, distributed to various addresses. The move is a part of the credit repayment process initiated after Genesis filed for bankruptcy in January 2023. These large transfers have raised market concerns, particularly regarding the effect on ETH prices.

ETH ETF Inflows and Grayscale Outflows: Mixed Market Sentiment

Despite the pressure from Genesis’s asset liquidation, Ethereum ETFs have shown resilience with continued net inflows. Data from Farside Investment indicates that Ethereum ETFs recorded a net inflow of $26.7 million on Thursday, marking the second time this week.

• For the first time since its inception, BlackRock’s iShares Ethereum ETF (ETHA) experienced more inflows than outflows from Grayscale’s Ethereum Trust (ETHE).
• This trend suggests improving investor interest in Ethereum-related ETFs, even amid challenging market conditions.

The stabilization of outflows from Grayscale’s Ethereum Trust hints at possible market stabilization. However, the full potential of these ETFs on Ethereum remains uncertain, as the market continues to adjust to new conditions.

Market Headwinds and Technical Analysis

The broader crypto market faces several risks that could lead to a bearish outlook. One notable factor is the upcoming repayment of BTC by Mt. Gox, which could impact Ethereum’s support levels.

Recently, Ethereum’s price has dropped by 5.94%, reaching approximately $2,976.40. This decline triggered around $76.43 million in liquidations over the past 24 hours, underscoring the market’s volatility. Technical analysis suggests that Ethereum may attempt a W-shaped recovery if it can maintain support between $3,175.56 and $2,923.61. However, failing to hold this support could lead to further downward movement.