Genesis suspends loan extension due to bitcoin’s “largest deleveraging” in history

Due to the “largest deleveraging” in history, cryptocurrency OTC trading platform and loan company Genesis Global Trading announced the suspension of loan extensions. Genesis CEO Michael Moro said in an interview with The Block’s podcast The Scoop that last month’s market collapse led to the disappearance of arbitrage opportunities and the cryptocurrency credit market is currently at an unprecedented level of instability. Earlier this year, the transaction price of the bitcoin futures market was higher than that of the spot market, and Genesis could obtain arbitrage opportunities from it. This required borrowing a large amount of dollars from the market to buy bitcoin spot and then sell it in the futures market. However, since the market prices plummeted on March 12 and 13, cryptocurrency futures trading has been at a discount, and arbitrage opportunities have disappeared. Most importantly, due to the sharp increase in trading activity, the Bitcoin blockchain has experienced considerable congestion , Which also makes asset transfer a challenge.