Was the Unprecedented Rise of Bitcoin A Planned Move?
Bitcoin has been at the center of several analyses since its rise the months of November and December of 2017 and its eventual fall in the month of January 2018. People are beginning to worry if they should sell on a loss or hodl on and hope to see a rise in the value of the Cryptocurrency.
Amidst all the chaos that the market is already experiencing, a report that proves that the rise of Bitcoin was a planned move is going viral on the internet. This pseudonymous report dated January 24, 2018 explains that a Cryptocurrency by the name of Tether was used by the Crypto exchange Bitfinex for buying large volumes of Bitcoins in December to artificially inflate Bitcoin’s value.
Tether was launched with the objective of creating a Cryptocurrency that is not as volatile as most Cryptocurrencies. To achieve this, the value of Tether hinges on the value of the US dollar. So every Tether (USDT) is backed by actual US dollars.
Tether is created every time a buyer stakes US dollars against the Tether. This happens independent of the existing Crypto market conditions because Tether’s price is derived from the value of the USD.
Tony Arcieri also sees a connection between Tether and Bitcoin’s value and feels that Tether may be artificially pumping up the value of Bitcoin.
The pseudonymous report claims that if Tether turns out to be the culprit in the sudden rise of Bitcoin then the price of Bitcoin may eventually hover around $2,000 which is what it was valued at before April 2017. This may also mean that Tether may not be the Cryptocurrency that it purports to be.
Bitfinex seems to be connected to the founders of Tether and reports seem to point that Bitfinex was using Tether to maintain liquidity in the exchange. The US Commodity Futures Trading Commission has launched a probe in the firm to understand the length of their connection with this alleged report.
You can learn more about Bitfinex exchange on the following website: https://www.cryptocoinjudge.com/.
You can review it efficiency and also get updates on news related to Cryptocurrencies, Crypto exchanges and Crypto casinos around the world through this website.
At this time, Bitfinex is one of the largest Cryptocurrency exchanges around the world in terms of trading volume. While it does not have any headquarters, the company operates from British Virgin Islands.
Investors do not see this as good news. To a certain extent, their fears seem valid. Bitcoin in itself has a lot of potential, but artificial price hikes mean that the market may soon see a price correction. If you have your investments in Bitcoin then you may want to follow the market closely for changes unless you want to hold. We get a lot of information and Crypto news from this website: https://www.icotokennews.com/. You may find it helpful too.