After the end of last year’s FTX debacle that shook the market, 2023 got off to a stronger start. Bitcoin recovered the losses it took after FTX’s collapse in November 2022. After several failed attempts through December, the leading cryptocurrency moved into a notable January rally, gaining about 40% to $23,116 by January 31.

The bankruptcy wave has not stopped, though. On January 20, the holding company of crypto lender Genesis Global Capital filed for bankruptcy in New York, joining the list of lending firms hit by the cycle. Genesis, pressured by both the FTX fallout and the earlier collapse of Three Arrows Capital, reportedly owes over $3.5 billion to its 50 largest creditors.

There were constructive signals in parallel. Wells Fargo, Bank of America, JP Morgan Chase, and other banks reportedly joined forces to challenge the dominance of Apple Pay, Google Pay, PayPal, and other third-party wallets. According to a WSJ report, the group is working on a new wallet product planned for the second half of the year, run by Early Warning Services, the fintech company owned by the participating banks.

Calling Bitcoin A Fraud… Again

It’s safe to say that JPMorgan Chase chairman and CEO Jamie Dimon is a highly controversial figure in the eyes of most crypto investors. Back in September 2017, during the peak of the ICO craze-driven bull market, the investment banks chief called Bitcoin “a fraud”, arguing that it is even worse than the Dutch tulip mania in the 1600s. In January 2018, he said he regretted his previous statement, with JPMorgan increasingly dabbling in crypto in the next few years. As over five years have passed since the CEO’s infamous statement, he once again bashed Bitcoin, calling it a “hyped-up fraud” while discussing cryptocurrencies and blockchain technology at CNBC’s Squawk Box.

Amazon’s Mysterious NFT Initiative

Amazon is reportedly planning to launch its NFT initiative in the spring. According to Blockworks’ report, the e-commerce and tech giant is “going all in” on digital collectibles projects that could include free non-fungibles for Amazon customers playing blockchain games, with the platform potentially operating on Amazon itself instead of Amazon Web Services. Interestingly, the news came two weeks after Avalanche creator Ava Labs’ partnership with AWS that have joined forces to accelerate blockchain adoption.

Law And Order

Regulators and law enforcement authorities have been quite busy in the crypto space this month. The US Securities and Exchange Commission sued both DCG’s Genesis and the Winklevoss twin Gemini crypto exchange on January 13. The SEC alleges that Gemini Earn, a lending program offered in collaboration by the two companies, was not a properly registered securities offering. A day earlier, Bulgarian police raided the offices of digital asset lender Nexo in Sofia as part of an international investigation aimed at cracking down on money laundering and violations of sanctions against Russia.

Bitcoin Recovers From The FTX Fiasco

It’s official: Bitcoin has recovered all its losses since FTX’s collapse in November 2022. Last year, news from the now-bankrupt crypto exchange drove BTC’s price from $21,400 on November 5 to less than $16,000 on November 9. After several unsuccessful attempts of recovery throughout December, Bitcoin has entered into a significant bull run this month, surging about 40% to $23,116 by January 31.

Goldman In Trouble

January didn’t bring the news Goldman Sachs hoped for. On the contrary, the investment banking giant has been hit by a Federal Reserve investigator targeting the financial institution’s consumer business, including the online bank Marcus. According to sources familiar with the matter, the regulator seeks to find an answer to whether Goldman had proper safeguards in place. A week prior to the report about the Fed probe, the financial giant revealed that it lost $3.03 billion on its consumer-focused business in the last three years, forcing the company to shut down Marcus personal loans.

Returning From The Dead

FTX’s collapse was by far the most high-profile and devastating black swan event of the crypto industry last year. And the drama doesn’t seem to end soon amid allegations of witness tampering and the seizure of over $450 million of Robinhood shares. Despite these events, FTX CEO John Ray is exploring the possibility of resuming the exchange’s operations. According to him, a newly established internal task force is investigating the matter.

New Year, New Bankruptcy

Last year, crypto market players witnessed an unprecedented series of bankruptcies. However, the drama doesn’t seem to stop anytime soon. On January 20, the holding company of crypto lender Genesis Global Capital filed for bankruptcy in New York, joining the ranks of fellow lending firms Celsius and BlockFi. Taking a hit from both the FTX fiasco and the collapse of the crypto hedge fund Three Arrows Capital, Genesis owes over $3.5 billion to its 50 largest creditors.

The Big Bank Wallet

Wells Fargo, Bank of America, JP Morgan Chase, and four other banks have reportedly joined forces to challenge the dominance of Apple Pay, Google Pay, PayPal, and other leading third-party wallet providers. According to a WSJ report, the banking giants seek to introduce the new product in the second half of the year. Managed by Early Warning Services, a fintech company owned by the seven financial institutions, the upcoming financial service will enable users to settle their payments at merchants and link their wallets with their credit and debit cards.

While we don’t know the details yet — including the product’s name — the digital wallet will reportedly allow customers to shop for items without manually providing their payment details.

Crypto Layoffs Continue

Mass layoffs at crypto firms have continued throughout the month. Coinbase, Crypto.com, and Huobi have all announced a 20% reduction in their workforces in January. The largest job cuts were at the digital asset banking giant Capital, which laid off around 40% of its workforce. After letting go of 30% of Genesis’ staff, its owner Digital Currency Group is now facing a greater crisis after the lender’s bankruptcy, exploring the potential sale of the crypto news outlet CoinDesk.

Arizona’s New Bitcoin Ambitions

As the surprise news of the month, Arizona Senator Wendy Rogers introduced a bill that would make Bitcoin legal tender in the US state. As a response to the surging interest in cryptocurrency among localists, the proposed legislation would enable citizens to use BTC to pay their debts, taxes, and other financial obligations while allowing state agencies to accept payments in the digital asset. The first jurisdiction to adopt Bitcoin as legal tender was El Salvador in September 2021, with the Central African Republic following the Latin American nation’s footsteps in April 2022.

Conclusion

January delivered a cleaner signal on what survives a shock cycle: price can recover faster than trust, and restructuring keeps running after headlines fade. Bitcoin’s rebound reset sentiment at the margin, yet enforcement pressure, lender bankruptcies, and ongoing layoffs kept pushing the industry toward consolidation and tighter controls.

The parallel theme is payments: big banks moving toward a shared wallet product suggests incumbents are not waiting for Big Tech or crypto-native firms to define the next interface layer. The next months look set to reward operators that can prove solvency, compliance discipline, and product utility under scrutiny.

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