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Bitcoin falls on fears of economic recession, genesis asset allocation
(MENAFN) Bitcoin's value continued its downward trajectory during recent trading sessions, driven by a broader sell-off in risky assets fueled by fears of an impending economic recession in the United States. This decline was compounded by Genesis beginning the distribution of crypto assets to creditors following a restructuring under bankruptcy protection. Bitcoin's price dropped by more than USD2,600, falling to USD60,000, as market sentiment turned increasingly bearish.
The widespread sell-off of risky assets began on Friday after the U.S. Department of Labor's Bureau of labor Statistics released a disappointing jobs report for July. The report revealed that the U.S. economy added only 114,000 jobs in July, significantly lower than the anticipated 176,000 and down from 179,000 in June. Furthermore, the unemployment rate rose to 4.3 percent last month, the highest level since October 2021, surpassing expectations that it would remain steady at 4.1 percent. This unexpected rise in unemployment has heightened concerns about the strength of the U.S. economy, leading to increased caution among investors.
In a separate development, Genesis announced that it has started distributing approximately USD4 billion in crypto assets and dollars to creditors as part of a Chapter 11 bankruptcy protection plan. According to blockchain analysis firm Arkham, crypto wallets associated with Genesis Trading transferred about USD1.4 billion in Bitcoin and USD520 million in Ethereum. The sell-off also affected smaller, less-traded cryptocurrencies such as Solana and Cardano, which experienced more significant declines. This distribution and the broader economic concerns have contributed to the increased volatility and downward pressure on the cryptocurrency market.
The widespread sell-off of risky assets began on Friday after the U.S. Department of Labor's Bureau of labor Statistics released a disappointing jobs report for July. The report revealed that the U.S. economy added only 114,000 jobs in July, significantly lower than the anticipated 176,000 and down from 179,000 in June. Furthermore, the unemployment rate rose to 4.3 percent last month, the highest level since October 2021, surpassing expectations that it would remain steady at 4.1 percent. This unexpected rise in unemployment has heightened concerns about the strength of the U.S. economy, leading to increased caution among investors.
In a separate development, Genesis announced that it has started distributing approximately USD4 billion in crypto assets and dollars to creditors as part of a Chapter 11 bankruptcy protection plan. According to blockchain analysis firm Arkham, crypto wallets associated with Genesis Trading transferred about USD1.4 billion in Bitcoin and USD520 million in Ethereum. The sell-off also affected smaller, less-traded cryptocurrencies such as Solana and Cardano, which experienced more significant declines. This distribution and the broader economic concerns have contributed to the increased volatility and downward pressure on the cryptocurrency market.
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