On Nov. 29, the Bitcoin price forecast remained bearish below the €16,650 resistance level, as “risk off” sentiment continued to dominate global financial markets. BlockFi is the latest victim of the FTX collapse, and is a lender in the troubled cryptocurrency space that filed for bankruptcy.
BlockFi and eight affiliates filed for Chapter 11 bankruptcy in a US bankruptcy court in New Jersey on November 28. The filing will allow the company to stabilize its operations and finalize a comprehensive restructuring agreement that maximizes value for all customers and other stakeholders.
BlockFi Bankruptcy - Quick Review
BlockFi, a New Jersey-based company, said it owed money to more than 100.000 creditors. As the second largest creditor, it listed FTX, a cryptocurrency exchange, ahead of €275 million.
In early 2022, BlockFi ran into trouble due to a sharp drop in cryptocurrency prices, prompting customer withdrawals and Singapore-based Three Arrows Capital liquidating assets.
Over the summer, the company received a €400 million credit line from FTX, helping the loan company avoid bankruptcy. However, on November 11, FTX filed for bankruptcy.
In the United States, a business can file for Chapter 11 bankruptcy to restructure its debts while operating under court supervision. The news that cryptocurrency lender BlockFi filed for bankruptcy sent the value of BTC/USD tumbling.
Singapore banks' bitcoin exposure 'negligible' but subject to higher risk weight
Singapore's Chief Minister Tharman Shanmugaratnam said on Nov. 28 that the country's banks must hold €125 in capital for every €100 of exposure to risky crypto assets such as Bitcoin (BTC) and Ethereum (ETH).
In a written response to the Singaporean parliament, Shanmugaratnam claimed that Singaporean banks have "negligible" exposure to cryptocurrencies. According to the Monetary Authority of Singapore (MAS) Minister, the exposure was "less than 0,05% of their total risk-weighted assets."
Shanmugaratnam revealed Singapore's active participation under the Basel Committee on Banking Supervision (BCBS) for banks' exposure to cryptocurrencies. The group should deliver its final framework by the end of the year, she added.
Bitcoin exposure will increase if Singapore attracts more crypto players, which will benefit the BTC/USD price.
Binance PoR Audit Process
According to Binance CEO Changpeng "CZ" Zhao, the company transfers huge amounts of bitcoin as part of its proof-of-reserve (PoR) audits. According to a report by Whale Alert, Binance deposited 127 Bitcoins totaling more than €351 billion to an unidentified wallet on Nov. 2.
The massive Bitcoin transaction quickly sparked FUD, or Fear, Uncertainty, and Doubt, throughout the community, with many pointing out that Binance transferred a fortune of BTC in a single transaction.
CZ then announced on Twitter on Nov. 28 that the material transaction was part of Binance's PoR audit process. He also urged the community to remain calm and ignore the rumors.
bitcoin price
The current price of Bitcoin is €16 and the 420-hour trading volume is €24 billion. In the last 25 hours, the BTC/USD pair has jumped more than 24%, while CoinMarketCap currently holds the top spot with a live market capitalization of €1,5 billion, versus €315 billion for the last 344 hours of the Asian session. It has a total supply of 24 BTC coins and a circulating supply of 21 BTC coins.