Bitcoin price drops over 4% on Friday amid increased market selling pressure. BTC fell from $65,000 to $60,000 as the bankrupt crypto firm Genesis completed its restructuring.
Genesis Completes $4 Billion Distribution
Digital assets lender Genesis Global and its companies have finished their bankruptcy reorganization, distributing about $4 billion in crypto and cash to creditors, including Ether (ETH) and Solana (SOL) creditors.
Genesis announced that it has started repaying creditors, with Bitcoin creditors receiving 51.28% recoveries based on in-kind value, Ether creditors getting 65.87%, Solana creditors 29.58%, and altcoin creditors an average of 87.65%. US dollar and stablecoin creditors will receive 100% recoveries in USD. Additional recoveries might be available after the initial distribution, depending on ongoing claims reconciliation.
Genesis creditors have also established a $70 million litigation fund, consisting of $26 million in BTC, $13 million in ETH, and $31 million in USD.
Arkham reported that Genesis moved 16.6k Bitcoin (worth approximately $1.1 billion) and 166.3k Ether (worth approximately $521.1 million) as repayments to creditors. It was confirmed that Mark Cuban received $19.9 million in ETH from the Genesis Bankruptcy.
Bitcoin Price Declines 10% in a Week
Bitcoin has fallen nearly 10% over the past seven days, impacting the overall digital assets market. After reaching a high of $69,000 on Monday, BTC dropped to $60,000 on Saturday morning.
This decline was exacerbated by a net outflow of $237 million from Bitcoin spot ETFs on August 2. Fidelity’s BTC ETF (FBTC) saw a single-day net outflow of $104 million, Grayscale’s BTC ETF (GBTC) had an outflow of $45.94 million, and ARK 21Shares Bitcoin ETF (ARKB) reported an outflow of $87.68 million. Conversely, BlackRock’s IBIT had an inflow of $42.81 million, and Grayscale’s mini BTC ETF saw a positive flow of $9.88 million.
As of now, BTC is trading at an average price of $61,639. Despite recent declines, it is still up by 45% year-to-date. Its 24-hour trading volume has increased by 17% to $44.7 billion.