Tether Deal With New York State Brings Quick Reversal of Crypto-Market Sell-Off

Bitcoin (BTC) and other cryptocurrencies partially rebounded from their biggest sell-off in a month after the New York attorney general's office announced it was settling a dispute with the stablecoin tether (USDT) that had shaken market confidence in recent weeks.
Bitcoin, the largest cryptocurrency by market value, soared to $ 49,000 after the announcement, after hitting lows below $ 45,000 on Tuesday. As recently as Sunday, Bitcoin had reached a new record of over 58,000 US dollars.
"After 2.5 years and 2.5 million pages of information shared, we are not admitting any wrongdoing and are paying $ 18.5 million to resolve this matter," Bitfinex tweeted, adding that no result indicated that Tether has ever issued [the stablecoin] with no support or impact on crypto prices.
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هل لديك الجرأة على مقارنة مزايا فول الصويا الأمريك
يؤكد استعراض شامل حديث نشره طرف خارجي أن فول الصويا الأمريكي يتفوق على غيره من الأنواع ال رىب من حيثب صير حيثب من ر.
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Related: What a Transparent Tether Means for Bitcoin
According to trader and analyst Alex Kruger, the settlement news for Bitcoin, Decentralized Finance (DeFi) and Bitfinex's LEO token is bullish.
JPMorgan analysts warned last week that a sudden loss of confidence in Tether - a stable coin often used to fund cryptocurrency purchases - would pose a risk to the stability of the crypto market.
In April 2019, New York prosecutors accused Bitfinex of using Tether's funds to cover the loss of $ 850 million in customer and corporate funds from a payment processor.
Bitcoin price had fallen to a 12-day low on the previous Tuesday, extending Monday's double-digit decline from record highs.
Related: Bitcoin Ready For More Losses After Two-Day Slump Wiped Out More Than $ 100 Billion
Despite the increased use of Bitcoin by major investors as a hedge against inflation, many analysts say in both the crypto markets and Wall Street that the cryptocurrency is still traded like a risky asset. Therefore, it is vulnerable when the mood in traditional markets darkens.
And that's exactly what happened on Monday, when stock markets came under pressure on Monday and the 10-year US Treasury note yield hit a 10-month high of 1.39%, which extended year-to-date earnings to over 35 basis points, or 0 , 35 percentage points.
Risk aversion likely helped pull Bitcoin down.
According to CNBC, rising yields could signal investor expectations of reflation - an increase in an economy's production levels through fiscal or monetary policy, or both, with a corresponding rise in the price of assets and consumer goods and services. The US Federal Reserve has been trying to get the economy going again since the March 2020 crash, pumping trillions of dollars into the system to help achieve that goal.
Analysts expect the Fed chairman Jerome Powell to tell Congress later Tuesday that the central bank is determined to keep interest rates down. The US Federal Reserve is likely to continue its liquidity-enhancing bond-buying program despite a recent rise in inflation expectations and improved growth prospects. This will likely lower bond yields and undercut both stocks and Bitcoin.
“The recent surge in yields has suppressed some risk sentiment, which is inevitable. But I suspect Powell will play it safe and the returns will be lower on his semi-annual testimonial. “Denis Vinokourov, head of research at London-based prime brokerage Bequant, told CoinDesk. "In return, we expect the flow of risk at BTC and thus also for the rest of the market to increase again and support the upward trend."
Margaret Yang, a strategist at DailyFX, says investors expect a large $ 1.9 trillion US fiscal stimulus bill that could improve the reflation theme and inflation outlook.
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Tether Deal With New York State Brings Rapid Reversal Of Crypto Market Selloff
Tether Deal With New York State Brings Rapid Reversal Of Crypto Market Selloff
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BTC-USD
-9.83%
USDT-USD
-0.06%
PAY-USD
-13.07%
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