As the new week begins, the Bitcoin and crypto market is seeing a bounce that could provide new momentum. The Bitcoin price has managed to break above the resistance area of around $17,000 for the first time in three weeks and was trading at $17,226 (+1.6%) as of press time. Ethereum is up 3.6% over the last 24 hours and is trading at $1,309. However, the euphoria in the Bitcoin and crypto market is hanging by a thread this week, as two events, in particular, could determine how prices develop. On the one hand, things could already become volatile today, as Cameron Winklevoss’ deadline for the Digital Currency Group (DCG) expired yesterday. On the other hand, the December CPI data will be released on Thursday, January 12. Will The DCG Drama Tear Down The Bitcoin Price? NewsBTC reported that the DCG / Grayscale drama took a new turn last week when Gemini wrote an open letter to DCG CEO Barry Silbert. Winklevoss accuses Silbert of using retail funds to engage in “kamikaze Grayscale NAV trading” from which he personally profited. In that stroke, Winklevoss lumps DCG with Celsius (misuse of customer funds) and BlockFi (same GBTC trade). Related Reading: Bitcoin Exchange Depositing Transactions At 4-Year Low, Bottom Signal? Gemini is also demanding its $900 million in Gemini Earn funds back and has given Silbert until yesterday, Sunday, to comply. So far, no information has become public that a deal has been reached. As Ram Ahluwalia of Lumida Digital Assets Advisors explained on the Unchained podcast, Gemini may file an involuntary Chapter 11 bankruptcy against Genesis to force the company to pay outstanding creditor debts. January 8 was the date Genesis’ loans are due and Gemini can force them into Chapter 11. If that happens, Genesis will be insolvent and DCG may immediately owe Genesis the entire $1.1 billion. According to Ahluwalia, the best solution for Genesis/DCG and Gemini is a restructuring outside of bankruptcy court, but given Barry Silbert’s alleged stalling tactics, it seems increasingly likely that Genesis will file for Chapter 11. All eyes are therefore likely to be on Cameron Winklevoss today, who could have some bad news for the crypto market with DCG’s bankruptcy filing. Given Grayscale’s massive BTC and crypto holdings, the news could send shockwaves through the market. Bullish News For The Crypto Market On Thursday? On Thursday, January 12 at 8:30 a.m. (EST), the Consumer Price Index (CPI) will be released. The forecast is 6.7%. If the number meets or falls below the consensus figure, this could be major for Bitcoin and the broader crypto market. Related Reading: Bitcoin Price Breaks Key Barrier And Aims Fresh Rally To $18K The faster the CPI falls, the more likely it is that Jerome Powell will announce only a 25 rate hike on February 1. If this happens, it is also more likely that Powell will refrain sooner than later from rate hikes and declare a pause, which will effectively constitute a pivot by the U.S. central bank. Featured image from Maxim Hopman / Unsplash, Chart from TradingView.com
