As the new week begins, the Bitcoin and crypto market is seeing a bounce that could provide new momentum. The Bitcoin price has managed to break above the resistance area of around $17,000 for the first time in three weeks and was trading at $17,226 (+1.6%) as of press time. Ethereum is up 3.6% over the last 24 hours and is trading at $1,309.
However, the euphoria in the Bitcoin and crypto market is hanging by a thread this week, as two events, in particular, could determine how prices develop. On the one hand, things could already become volatile today, as Cameron Winklevoss’ deadline for the Digital Currency Group (DCG) expired yesterday. On the other hand, the December CPI data will be released on Thursday, January 12.
Will The DCG Drama Tear Down The Bitcoin Price?
NewsBTC reported that the DCG / Grayscale drama took a new turn last week when Gemini wrote an open letter to DCG CEO Barry Silbert. Winklevoss accuses Silbert of using retail funds to engage in “kamikaze Grayscale NAV trading” from which he personally profited. In that stroke, Winklevoss lumps DCG with Celsius (misuse of customer funds) and BlockFi (same GBTC trade).
Gemini is also demanding its $900 million in Gemini Earn funds back and has given Silbert until yesterday, Sunday, to comply. So far, no information has become public that a deal has been reached.
As Ram Ahluwalia of Lumida Digital Assets Advisors explained on the Unchained , Gemini may file an involuntary Chapter 11 bankruptcy against Genesis to force the company to pay outstanding creditor debts. January 8 was the date Genesis’ loans are due and Gemini can force them into Chapter 11. If that happens, Genesis will be insolvent and DCG may immediately owe Genesis the entire $1.1 billion.
According to Ahluwalia, the best solution for Genesis/DCG and Gemini is a restructuring outside of bankruptcy court, but given Barry Silbert’s alleged stalling tactics, it seems increasingly likely that Genesis will file for Chapter 11.
All eyes are therefore likely to be on Cameron Winklevoss today, who could have some bad news for the crypto market with DCG’s bankruptcy filing. Given Grayscale’s massive BTC and crypto holdings, the news could send shockwaves through the market.
Bullish News For The Crypto Market On Thursday?
On Thursday, January 12 at 8:30 a.m. (EST), the Consumer Price Index (CPI) will be released. The forecast is 6.7%. If the number meets or falls below the consensus figure, this could be major for Bitcoin and the broader crypto market.
The faster the CPI falls, the more likely it is that Jerome Powell will announce only a 25 rate hike on February 1. If this happens, it is also more likely that Powell will refrain sooner than later from rate hikes and declare a pause, which will effectively constitute a pivot by the U.S. central bank.
Bitcoin price (BTC/USD), 1-day chart
Featured image from Maxim Hopman / Unsplash, Chart from TradingView.com
Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with wncen.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.
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His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.
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For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.
As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.
In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.
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