Crypto lender Genesis' lending desk hit with a wave of deleveraging as prices fall

Cryptocurrency brokerage Genesis' lending desk experienced a "wave of year-end deleveraging" as digital asset prices continue to fall in a nearly three-month cyclical decline, according to the company's fourth-quarter results. Increased regulatory scrutiny on digital assets, as well as broader price volatility in a broader risk-off environment, have pushed down crypto prices to multi-month lows. Loans outstanding peaked at more than $16B in mid-November - about the same time that the global crypto market cap topped out at $3T. Bitcoin (BTC-USD) and ethereum (ETH-USD), which account for the majority of the crypto market cap, climaxed at about the same time as well. Meanwhile, as more institutions participate in the crypto market, Genesis, one of the largest digital asset lenders, loaned out a record $50B in Q4 2021. This figure is up 40% from the prior quarter and 565% above its Y/Y print. Q4 active loans outstanding of $12.5B jumped 12% from the