Just when you thought the fallout from the collapse of FTX could not get any worse, it gets worse. Digital asset brokerage Genesis is struggling to raise money for its lending unit and may need to file for bankruptcy if it can't raise the needed capital.

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As you can expect, the news has made the price of Bitcoin tumble. 

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Genesis has faced a liquidity crunch after crypto exchange FTX’s bankruptcy filing this month and has spent several days seeking at least US1 billion in fresh capital. In this current economic climate, raising capital for cryptocurrency considered radioactive in the wake of the FTX collapse might be difficult.

Three Arrows Capital and Alameda Research were two of Genesis' biggest borrowers, both undergoing bankruptcy proceedings. It's not a surprise that Genesis is facing a liquidity crunch.

The importance of Genesis potentially collapsing is significant. While they don't serve individual investors, Genesis is quite a large player in crypto lending. They back companies such as Circle Internet Financial, which runs one of the largest crypto stablecoins, USD Coin.

There is also a rumour that BlockFi will file for bankruptcy in the next few days. Such a thing would ultimately cause the price of Bitcoin to fall to a level I predicted would happen before the end of the year, $12k.

Things are not looking good for crypto. A perfect storm of inflation, rising interest rates, increased cost of living, plummeting tech stocks and amateurs responsible for billions in crypto, we are witnessing a great reset of crypto and will probably see Bitcoin fall to US $10k or less sometime soon.

In the long term, I believe in cryptocurrency, and it will survive. However, it's evident many of these unregulated crypto lenders and platforms are being run by amateurs, twenty-something kids who got lucky and accidentally became responsible for billions in crypto.

If we want to see cryptocurrency adoption and for crypto to be respected, we need to get over these issues currently facing it. I know regulation is a touchy subject for some of you, but it's clear that the way things are being handled right now is not working.