Cryptocurrency does not stop falling in the next week

  • And
  • +A

Investors usually devote the end of the year summarizing the work of their portfolios and plans for the phasing out of trading in the holiday period, this year, it seems, still long to be able to relax. On the market there are signs of panic, and not just for cryptocurrency.
The fed rate hike, the rising cost of dollar borrowing, which will be over soon, reducing the risk premium and as a result, the flow of capital in risk-free assets such as government bonds, all of these factors, working together, are forcing investors to prefer the dollar any net investment, at least temporarily.
Plummeted not only the cryptocurrency market, but the us stock market since the beginning of the week, the S&P500 declined by -3,77%, the Dow Jones on -3,81%, the Nasdaq -4,61%.
But crypto-currencies have fallen by 30% over the week (meaning a decrease in total capitalization from $200 to $144 billion), and the end is not yet.
Bitcoin lost -30,19% for the week has the prospects of reducing another 25% to around $3100 for BTC. This forecast applies to all cryptocurrencies, as they are highly correlated.
Additional pressure on the market have reports that the U.S. Department of justice began to investigate the relationship between the activity of the Tether, and the Bitfinex bitcoin exchange rate.
An investigation on suspicion of manipulating the Bitcoin market issued by company Tether stablon or licenzirovanie dollar – USDT and operations at cryptocurrency exchange Bitfinex at the end of 2017.
According to Bloomberg, the investigation is being conducted in cooperation with the Commission on commodity futures trading (CFTC), which in December last year sent subpoenas to companies that did not disclose, according to the Law on freedom of information.
However, sources of news, it became known that the Ministry of justice is interested in the details of the issue USDT, formation of demand for the cryptocurrency and communications Tether with Bitfinex.
Let me remind you that Tether whose stablein is the most popular and in demand in the market, and the capitalization is $1.7 billion, never in history did not provide deployed audit reports of its activities, in flagrant violation and a vivid sign of the lack of collateral, for intelligible reasons to hide the records, assuming that they are entirely satisfactory, no.
_____________
Olga Prokhorova,
Expert
“International Financial Center”