The crypto market is going through another bearish phase this month as top cryptocurrencies lost most of their gains from October. Bitcoin (BTC) failed to hold the key $55,000 support and is currently trading at $54,777. Amid the growing pressure from the bears, Tether’s latest issue has created another market FUD. Detail Cryptocoin. com
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Will Bitcoin be affected?
Tether is often accused of printing additional USDT to pump the BTC market. Despite the lack of conclusive evidence for the allegations, the controversy over Tether’s reserves has only fueled the fire. The latest $1 billion USDT issuance has sparked a similar controversy, especially given the crypto market is bleeding out.
Tether treasury printed billion-dollar USDT on November 26, on the same day the crypto market suffered a sharp decline due to fears of Covid-19 new variant in the stock market.
https://twitter. com/CryptoWhale/status/1464304038313435137
The controversy also comes at a time when US federal agencies are demanding more power from Congress to crack down on the stablecoin market. Given its track record of mismanagement of USDT reserves, Tether has always been a major concern for regulators. The stablecoin issuer was recently fined $41 million by the CFTC for misleading claims. Earlier in February this year, Tether settled a long-standing lawsuit with the New York Attorney General’s (NYAG) Office over mismanagement of funds. Tether was fined $18.5 million and banned from providing any services in New York.
BTC has lost more than 20% from its ATH of 68,789 in recent corrections. Major price targets of $98k seem out of the picture. Bitcoin analyst Plan B, who popularized the Stock-to-Flow model, admitted that BTC is ready to miss its first price target in November.
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