- Traders present a paradoxical on Bitcoin price if Bitfinex and NYAG case goes through
- Bitcoin proponents closely watch central Banks Monetary Policies
- Bitcoin Price Analysis of Flash Crash to $9150 this morning, along with analysis of Fear and Greed Index
The Bitfinex vs. NYAG case will unfold in court today. New York’s Attorney General has accused iFinex of embezzling $700 million. While the attacks have been posed against a single exchange, the potential effect on crypto prices may well be significant.
The charges against the Exchange and Tether, if proved, would motivate the people to flock to Bitcoin and other cryptos due to loss of trust. This is a bullish scenario for Bitcoin and other cryptocurrencies. Nevertheless, the total market capitalization should remain constant.
Last week I had a conversation with @Bitfinexed on twitter, who has accumulated more than 45,000 followers by opposing Bitfinex and their involvement with Tether, puts it this way.
A snippet of Conversation about Bearish Case
Now, this is a bit more concerning. If iFinex indeed has been deploying creative monetary policy in the crypto market, it could be an indication that current valuations are overdone.
IF that is indeed the case, we’ll then need to understand more specifically how much unbacked USDT has been deployed in the market. If the extent of it is just $700 million, then the impact on price would likely be insignificant as this is approximately as much money as is traded on a slow day in the crypto market.
Hence, it presents the possibility of a bullish scenario along with chances of mayhem.
Crypto Reactions to Central Bank Policies