Top Crypto Investment News, Listings, Member Posts, Crypto Investment Daily Indices and more!

4yrs ago Crypto newsbtc Views: 314

The crypto community was once again shaken earlier this week when news broke regarding the New York Attorney General’s (NYAG) office pursuing further investigative action into the controversial stable coin Tether and related crypto exchange Bitfinex.

Concerns surrounding Tether have plagued the crypto markets for well over a year, but Bitcoin’s relatively small drop that ensued after the latest development may signal growing fundamental strength behind BTC.

Concerns Surrounding Tether Rekindled 

In a press release that was posted on April 25th, the NY Attorney General’s office boldly stated that iFinex – the parent company of both Bitfinex and Tether – may be defrauding NY-based investors who trade cryptocurrencies.

According to the press release, Bitfinex sent a whopping $850 million to a company based in Panama that resulted in the exchange losing access to these funds. In response to this, Bitfinex granted itself access to a significant amount of Tether’s cash reserves that are supposed to be used to maintain USDT’s 1:1 USD backing.

This news spread throughout the crypto industry like a wildfire, and rekindled concerns that USDT – which remains one of the most popular stable coins – is not actually backed 1:1 by USD, which would undoubtedly have a massive impact on Bitcoin’s price.

Bitcoin’s Price Barely Reacts to Tether News

Although the Tether news certainly validates some of the concerns that are circling through the community, investors clearly aren’t too afraid that anything will truly come about as a result of the NYAG’s investigation, as Bitcoin’s price has remained relatively stable.

At the time of writing, Bitcoin is trading down marginally at its current price of $5,250, down from its weekly highs of roughly $5,650.

Chris Burniske, a partner at venture capital firm Placeholder VC, spoke about the relatively small impact the Tether imbroglio had on Bitcoin’s price, noting that the spread between BTC’s price on Bitfinex versus other exchanges is making him “queasy.”

“On one hand, I’m impressed with how $BTC has held given the #Tether news, on the other hand the ~$200 spread between @bitfinex & other exchanges is making me queasy,” he noted.

On one hand, I’m impressed with how $BTC has held given the #Tether news, on the other hand the ~$200 spread between @bitfinex & other exchanges is making me queasy.

— Chris Burniske (@cburniske) April 26, 2019

Furthermore, Burniske also said that Bitcoin’s minor reaction to the news is emblematic of the current market sentiment, but further noted that he believes BTC needs to drop back towards either $4,000 or its 200-week SMA in order for the bull market to truly begin.

“On the other hand, we’ll see if Bitfinex can withstand the run on the bank & what further Tether boots drop. With $BTC needing to retrace to either $4K or the 200 week SMA to have a rock solid base for the bull market to come (IMO), we could get our last great opp of 2019,” he explained.

On the other hand, we’ll see if Bitfinex can withstand the run on the bank & what further Tether boots drop.

With $BTC needing to retrace to either $4K or the 200 week SMA to have a rock solid base for the bull market to come (IMO), we could get our last great opp of 2019.

— Chris Burniske (@cburniske) April 26, 2019

As the imbroglio surrounding the Tether and Bitfinex situation continues to unfold and as investors continue to migrate away from USDT and towards other stable coins in preparation for the worst, it will likely become increasingly clear as to just how large of an impact it will have on the markets long-term.

Featured image from Shutterstock.

Bitcoin Price Reaction to Tether Fiasco May Signal Strong Fundamental Strength on NewsBTC.


Today's Crypto Investment Headlines:

Log In for More
Access Over 250K+ Industry Headlines, Posts and Updates
Not a member yet?

Join AlphaMaven

The Premier Alternative Investment
Research and Due Diligence Platform for Investors

Free Membership for Qualified Investors and Industry Participants
  • Easily Customize Content to Match Your Investment Preferences
  • Breaking News 24/7/365
  • Daily Newsletter & Indices
  • Alternative Investment Listings & LeaderBoards
  • Industry Research, Due Diligence, Videos, Webinars, Events, Press Releases, Market Commentary, Newsletters, Fact Sheets, Presentations, Investment Mandates, Video PitchBooks & More!
  • Company Directory
  • Contact Directory
  • Member Posts & Publications
  • Alpha University Video Series to Expand Investor Knowledge
  • AUM Accelerator Program (designed for investment managers)
  • Over 450K+ Industry Headlines, Posts and Updates
ALL ALPHAMAVEN CONTENT IS FOR INFORMATIONAL PURPOSES ONLY. CONTENT POSTED BY MEMBERS DOES NOT NECESSARILY REFLECT THE OPINION OR BELIEFS OF ALPHAMAVEN AND HAS NOT ALWAYS BEEN INDEPENDENTLY VERIFIED BY ALPHAMAVEN. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. THIS IS NOT A SOLICITATION FOR INVESTMENT. THE MATERIAL PROVIDED HEREIN IS FOR INFORMATIONAL PURPOSES ONLY. IT DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY INTERESTS OF ANY FUND OR ANY OTHER SECURITIES. ANY SUCH OFFERINGS CAN BE MADE ONLY IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE INVESTMENT'S PRIVATE PLACEMENT MEMORANDUM. PRIOR TO INVESTING, INVESTORS ARE STRONGLY URGED TO REVIEW CAREFULLY THE PRIVATE PLACEMENT MEMORANDUM (INCLUDING THE RISK FACTORS DESCRIBED THEREIN), THE LIMITED PARTNERSHIP AGREEMENT AND THE SUBSCRIPTION DOCUMENTS, TO ASK SUCH QUESTIONS OF THE INVESTMENT MANAGER AS THEY DEEM APPROPRIATE, AND TO DISCUSS ANY PROSPECTIVE INVESTMENT IN THE FUND WITH THEIR LEGAL AND TAX ADVISERS IN ORDER TO MAKE AN INDEPENDENT DETERMINATION OF THE SUITABILITY AND CONSEQUENCES OF AN INVESTMENT.