Bitcoin price plummets to $60K, what’s behind the massive sell-off?

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Bitcoin price recorded a slump of over 4% on Friday as selling pressure intensified in the market. BTC slipped from $65,000 levels straight to the $60,000 zone as the bankrupt crypto firm Genesis completes restructuring.

Digital assets lender Genesis Global and its companies have completed bankruptcy reorganization and started distributing about $4 billion in crypto and cash to creditors. This includes payments made to Ether (ETH) and Solana (SOL) creditors.

Genesis distributes $4B in Bitcoin, ETH and more

Genesis announced the commencement of repayment by distributing $4 billion to creditors and mentioned that the plan does not seek to cap recoveries at petition date value. The creditors will receive on average 64% recoveries on an in-kind.

It added that Bitcoin creditors will receive 51.28% recoveries as valued on an in-kind basis, while, Ether creditors will get 65.87% recoveries. However, Solana creditors will collect 29.58% recoveries and altcoin creditors will receive on average 87.65% recoveries as valued on an in-kind basis.

Genesis highlighted that the US dollar and stablecoin creditors will receive 100% recoveries in the form of US dollars. It is expected that the creditors will be entitled to additional recoveries after the initial distribution which will depend on the results of ongoing claims reconciliation.

As per the announcement, Genesis creditors 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 (approx worth $1.1 billion) and 166.3K Ether (approx worth $521.1 million) as repayments to creditors. It later confirmed that Mark Cuban received $19.9 million of ETH from the Genesis Bankruptcy.

Bitcoin drop bys 10% in 7 days

Bitcoin price has tumbled by almost 10% in the last 7 days dragging down the overall digital assets market. BTC went on to hit the upper high of $69K on Monday suggesting a return of bulls, meanwhile, it touched the lower lows of $60K on Saturday morning.

The biggest crypto witnessed another blow as Bitcoin spot ETF recorded a total net outflow of $237 million on August 2. Fidelity BTC ETF (FBTC) had a single-day net outflow of $104 million and Grayscale BTC ETF (GBTC) saw a single day outflow of $45.94 million. ARK 21Shares Bitcoin ETF (ARKB) reports another major outflow of $87.68 million.

BlackRock’s IBIT saw an inflow of $42.81 million with a positive flow of $9.88 million in Grayscale’s mini BTC ETF. The total net assets of Bitcoin ETF stands at $57.2 billion

BTC is trading at an average price of $61,639, at the press time. It is still up by 45% on a year-to-date basis. Its 24 hour trading volume is up by 17% to stand at $44.7 billion.

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