Bitcoin Falls Below $21K, Ethereum, Dogecoin Slide Amid Genesis Worries: Analyst Says Apex Crypto Needs 'To Trap Just A Few More Bears'

Major coins traded in red on Wednesday evening as reports suggested Genesis Global Capital, the institutional cryptocurrency brokerage whose lending unit recently suspended customer withdrawals in the aftermath of FTX's collapse, prepares to file for bankruptcy. 

What Happened: Bitcoin BTC/USD sank below $21,000, and Ethereum ETH/USD was trading down 3%. 

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Dogecoin DOGE/USD fell 5%, but Shiba Inu SHIB/USD surged as much as 20% earlier Wednesday, with Nansen reporting an overwhelming amount of trading on both decentralized and centralized exchanges. At the time of writing, SHIB was down 7% in the last 24 hours.

U.S. Equities closed lower on Wednesday after the latest Producer Price Index (PPI) report suggested that inflationary pressures continued to slow in December. The Dow Jones Industrial Average (DJIA) dropped 1.8%, the S&P 500 was down 1.5%, and the tech-heavy Nasdaq Composite declined a further 1.2%.

Crypto trade publication CoinDesk is reportedly exploring strategic options to fuel future growth, including a potential sale of a full or partial stake in the company owned by Barry Silbert's Digital Currency Group. 

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“Bitcoin prices are weakening as growth fears have Wall Street worried a soft landing might not happen. The outlook for crypto has improved dramatically over the past few weeks, but the current rebound appears to finally be facing some resistance,” said Ed Moya, a senior market analyst with OANDA, in a note seen by Benzinga.

Crypto analyst Michaël van de Poppe tweeted that it seems like market cycles are repeating themselves, with people again predicting that markets will go as low as $5,000 and expressing doubt about investing

Probably we'll get a correction where people are starting to say again that markets will go to $5K and are doubtful to buy into #Bitcoin, just like how it goes every time the market consolidates.

— Michaël van de Poppe (@CryptoMichNL) January 18, 2023

Kaleo, the pseudonymous analyst, restated that $30,000 is still a firm target, and believes that we could still see at least one dip below $20,000 before reaching that level. 

Btw - here’s the start of the next thread https://t.co/VCV5JVYgtm

— K A L E O (@CryptoKaleo) January 18, 2023

#Bitcoin / $BTC

still looking to fill a few bids a bit lower before the reversal

need to trap just a few more bears pic.twitter.com/ftn8Xla0KC

— K A L E O (@CryptoKaleo) January 18, 2023

Read Next: Dogecoin, Ethereum Spike As Bitcoin Holds Above $21K: Analyst Warns 'Late Bulls To Flip Bearish' If Apex Crypto Retests This Level