By today many of us already know that on Tuesday, a bunch of USDT got printed. You know USDT, as in the US Dollar replacement, created by Tether. Often USDT is referred to as Tether itself.
So why is this important? If you've paid attention, then Tether and Bitfinex share the same CEO and according to various historical data, printing USDT often, if not always precedes a price spike.
Searching a bit on the web reveals multiple charts about the effects of Tether issuing more USDT out of thin air. Most of the times, if not all, Bitcoin and subsequently the whole market, gets a boost quite soon after.
So what's the theory?
According so speculations, when the market needs propping up, finex needs/wants money or whatever the reason, Tether issues some more USDT. Then it sends some of it to Bitfinex, it's secret brother and the rest is up for sale - other exchanges will need it too. But Bitfinex, with it's own share, starts buying Bitcoin, pumping up the price, creating a wave of buying. Buy low, sell high -and if you can buy it low with free money that you just printed and sell for cold hard cash - why the hell not.
Keep in mind, this is speculation. No actual accusations will come out of this article as proof is not evident. But what i wanted to point out - this will net a nice profit in a form of a daytrade to Finex itself, but in a bear market, it will probably not create any trend-changing moves, unless:
The point is, if you have available funds, it doesn't mean that you should put your life savings in BTC at this very moment. Rather look at these as short term market affecting events. Fundamentally, you need to look at the wider picture and perhaps buy in at the darkest moment. What the bottom will look like - no one has a clue before it actually happens - will it be flat or a giant spike. My bet is a flat bottom slowly building momentum.
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If we're already talking about Bitfinex, there is something you might want to be aware of as well, if you're a customer. Some people are reporting failed fiat deposits to their trading accounts, with the money bouncing back or delays up to multiple weeks with missing funds, resulting in margin calls in multiple cases as the bear market is taking a heavy toll on markets.
Bitsonline reports, that users are chewing their fingernails and waiting for deposits as large as $100 000 to surface somewhere, with no response from customer reps.
So until this is solved, make sure to use another gateway for fiat -> crypto.
It's a jungle out there. Happy trading ;)
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I am betting also on a flat bottoming. When looking at charts it would be too soon to have another massive bull run right now. The next one will be probably well backed.
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Let us hope for a run though,i just read news that might helpe the crpto market
I remember when Facebook banned Ads,the market had a rough time and it has failed to recover til now!
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You have a minor grammatical mistake in the following sentence:
It should be its own instead of it's own.Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
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Thank you, oh great automated grammar nazi, for reminding me the basics of english.
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