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Date:
24th Feb 2021
Author:
Dalmas Ngetich, for CryptoAltum News Team

Bitcoin $2.86 billion Liquidation, will Tether (USDT) News Tame Bears?

By Feb 23, $2.86 billion of BTC longs had been liquidated. However, news of the New York Office of the Attorney General (NYOAG) settling with Tether Limited—the official issuer of USDT, for $18.5 million came as a welcomed relief for bulls. After months of higher highs, it was only natural for prices to recoil in a pullback that shakes off weak hands, allowing whales to snap Bitcoin for cheap. The plunge to $48k on Feb 23 saw $2.86 billion of leveraged longs across multiple crypto exchanges, mostly Binance, closed in a market calibration.


Details: 

The past two days have been a bloodbath in the crypto scene. A carnage that saw traders lose $2.86 billion, shifting markets highlights the need for risk management in crypto trading. Despite losses, bulls are optimistic of recovery, more so following the NYOAG settling with Tether Limited. They had accused the issuer—which, together with Bitfinex, is managed by iFinex, of manipulating Bitcoin prices and fraud when. NYOAG alleges USDT being used to cover up an $850 million loss. Although they settled, Bitfinex is now banned from transacting with New Yorkers. The risks posed to the crypto scene have been alleviated considering how instrumental USDT is, especially in Ethereum and DeFi.


Impact on the Bitcoin Price: 

Bullish. Market fluctuations are normal. Bitcoin fundamentals are even firmer following Tether Limited's settlement with NYOAG. Even though prices are shaky, a recovery above $50k, especially if Feb 23 bar is not confirmed, is bullish for BTC.


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