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Bitcoin price near $23,000 as it shrugs off Genesis bankruptcy

Bitcoin Symbol in a digital raster microstructure - 3d illustration
Bitcoin saw a climb of over 8.9% in the past week. Photo: Getty

Bitcoin (BTC-USD) is continuing its 2023 bull run, surging past $23,000 for the first time since August 2022 before retreating to around $22,705 on Monday.

Bitcoin smashed through a price position not seen since before the collapse of the FTX cryptocurrency exchange in November 2022, which plunged the market into a series of liquidations.

Bitcoin stood at $22,714 (£17,383) at the time of writing, up from a low of $16,000 at the beginning of the year. This was a climb of over 8.9% in the past week.

Bitcoin pioneer Max Keiser said: "Bitcoin shakes off the FTX scandal off like water off a duck’s back.

"People focus on price when they should focus on hash rate, and adoption rates hitting new all time highs and how bitcoin is transforming Central America and Africa while additionally making inroads globally."

The second largest cryptocurrency by market capitalisation, ethereum (ETH-USD), was up over 5% in the week to $1,633.

The crypto-market shrugged off Friday's bankruptcy filing of crypto-lender Genesis, with the entire market capitalisation for the sector now standing at $1.08tn, according to data from Coingecko.

Analysts speculated that the bankruptcy of the investor platform had already been expected by traders, with signals being telegraphed for many weeks.

Jamie Burke, head of web3 accelerator Outlier Ventures, said: "I guess it was already priced in."

Genesis is part of the Digital Currency Group (DCG), a conglomerate of more than 200 crypto-focused businesses.

The insolvency of Genesis is linked to the bankruptcy of FTX, which went under last November amid allegations of fraud.

Read more: How crypto fell to earth in 2022: Eight charts that tell the story of a cruel crash

The firm had recently been charged by US regulators Securities and Exchange Commission (SEC) with illegally selling crypto.

Owners of the Gemini crypto platform, the Winklevoss twins, have now threatened to sue Genesis boss Barry Silbert.

Gemini used the Genesis platform for its interest accruing accounts.

The Winklevoss twins now want Silbert to offer "a fair offer to creditors who were duped" into losing $900m, as the crypto company files for bankruptcy.

Gemini lent Genesis the $900m as part of its Earn program, which let clients earn interest by loaning out their assets

More than 340,000 Gemini clients have been impacted by the bankruptcy.

Watch: Bitcoin recovers to pre-FTX crash levels ⁠— The Crypto Mile weekly update