Bitcoin traded within a $2,000 range this weekend, making a substantial move to the downside following yet another Tether-related scandal on Saturday evening.
Last week, Coin Rivet reported that Bitcoin’s next level of support was at $10,700 having failed to achieve a new high above $13,000.
As predicted, price did fall to the $10,700 region where it was initially propped up by a tweet from Tether, who seemingly minted $5 billion worth of Tether tokens.💵 💵 💵 💵 💵 💵 💵 💵 💵 💵 5,000,000,000 #USDT (4,996,932,524 USD) minted at Tether Treasury Tx: https://t.co/2FzJrc3tyi — Whale Alert (@whale_alert) July 13, 2019
The value of Bitcoin instantly shot back up to $11,500, leaving a wrath of short positions liquidated on exchanges like BitMEX and Deribit.
It wasn’t until 30 minutes later when Bitfinex CTO Paolo Ardoino announced that the $5 billion worth of Tether was a “mis-click” that price began to fall back to the $10,700 region.Tonight's events:#Bitcoin falls below $11k before finding support at $10,800. Tether 'accidentally' prints $5 billion Tethers, price immediately pumps back to $11,450. Tether then burns $4.5 billion Tethers, price begins to fall. I do love $crypto but this needs to stop. pic.twitter.com/cFJIJIZ3rF — Oliver Knight (@KnightCoinRivet) July 13, 2019
Tether then ‘burned’ $4.95 billion worth of Tether tokens, leaving speculators dumbfounded about the evening’s events.
While seemingly unintentional, this behavior from an exchange as reputable as Bitfinex may be seen negatively by regulators and law enforcement agencies, who have been openly critical of the perceived manipulation in the cryptocurrency markets.
A short time after the minted $5 billion tokens were burned, the price of Bitcoin fell by more than 13.8%, all the way down to $9,850.🔥 🔥 🔥 🔥 🔥 🔥 🔥 🔥 🔥 🔥 4,500,000,000 #USDT (4,498,454,588 USD) burned at Tether Treasury Tx: https://t.co/gobsOzzMDZ — Whale Alert...