Major coins traded mixed on Monday evening after reports said the cryptocurrency exchange Gemini cut another 10% of its workforce.
What Happened: The largest cryptocurrency by market value Bitcoin BTC/USD was trading below $23,000. Ethereum ETH/USD was trading at $1,630. Dogecoin DOGE/USD was down 0.65% in the last 24 hours, trading at $0.088.
U.S. equities closed on a high note with strong optimism that the Federal Reserve will take steps to reduce its aggressive monetary policy. The tech-centric Nasdaq Composite rose 2%, while the S&P 500 and the Dow Jones Industrial Average (DJIA) climbed 1.1% and 0.7%, respectively.
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Gemini, the crypto asset exchange backed by the Winklevoss twins, has been swept up in the bankruptcy of crypto lending giant Genesis Global Capital. As a result, Gemini has been unable to deliver funds to its Earn account holders, leaving behind over $900 million in debt. This caused tension between Gemini and its parent company, Digital Currency Group.
“An ice age was supposed to happen given everything that went wrong for crypto this year. Months of cleaning up the FTX mess were expected, but after losing over 60% last year, Bitcoin pessimism was exhausted. Even struggling companies like Bitcoin Miner Argo are staging a comeback and appear poised to return to the Nasdaq. Bitcoin has tentatively found a home above the $22,500 level as risk appetite remains healthy. A lot still could go wrong for the broader market and if that happens, it will be interesting to see how crypto reacts,” said Edward Moya, a senior market analyst at OANDA, in a note seen by Benzinga.
Crypto analyst Michaël van de Poppe has predicted that, given the current bullish momentum and the emergence of bearish divergence, Bitcoin could drop down to a price of $21,410.
Rekt Capital, a pseudonymous analyst, has suggested that Bitcoin’s performance could be in serious danger if the current level of around $23,400 fails to act as support.