Bitfinex CEO Statements Express Worry Bitcoin Price Could Fall to $1,000 BTC/USD
Today it was not a good day for virtual currencies. Most of them are registering large losses after the scandal in which Bitfinex and Tether (USDT) are involved. The New York State Attorney General Letitia James explained that Bitfinex mismanaged customer’s funds, something that could have had very negative effects in the crypto market.
The cryptocurrency market has been in a positive trend since the beginning of April. However, the last week of the month seems to be a little bit moved for the crypto space. Bitfinex has been accused of using Tether’s funds in order to cover up around $850 million in losses. However, the firm did not inform investors about this situation.
iFinex Inc., the company behind both the cryptocurrency exchange Bifinex and the stablecoin Tether, has been barred from conducting businesses in the State of New York. The crypto exchange started to receive withdrawal requests from customers and it couldn’t process these requests due to the fact that there was no money to give. Several millions of dollars were gone. This is why the exchange decided to grant itself access to the Tether reserves and provide the necessary funds to those that were changing USDT for USD.
This is not the first time that Tether is involved in these controversies. The stablecoin has never been publicly audited and it has been accused of manipulating Bitcoin (BTC) prices.
The situation experienced by Bitfinex and Tether has affected the whole cryptocurrency market. In the last 24 hours, there were only 10 coins operating positively among the top 100. At the same time, Bitcoin dropped under $5,300 after being traded close to $5,600.
Back in October 2018, the CEO of Bitfinex and Crypto Capital Corp representative met in order to discuss some issues about the crypto market and the business strategy of Bitfinex. The CEO has mentioned that Bitcoin could drop down to $1,000 if the situation about Tether and Bitfinex was not solved quickly.
Back in 2018, Tether lost its pair against the US dollar due to accusations that it was used for sustaining Bitcoin’s price during bear markets. Today Tether has lost its peg with the US dollar as well but just for a few cents.
Bitcoin is the most popular digital asset in the market and it remains the leader in the crypto space. Back in December, the digital currency fell down to $3,200 and it is now being traded close to $5,300.
Nevertheless, there are many bullish experts that believe that the digital asset will be growing and reaching new highs. For example, Thomas Lee, the co-founder of Fundstrat Global, thinks that Bitcoin is going to be reaching a new all-time high as soon as in 2020. Currently, Bitcoin has a market capitalization of $92.46 billion.
Live Bitcoin (BTC) Price:
1 BTC/USD =$53,695.3420 change ~ 8.28%