Today, bitcoin went below $10k, which is also the previous support during Nov-Dec 2017 before making the rise to $20K.
So what happened? A few stories below.
First is the tether and bitfinex drama. US regulators have served subpoenas to bitfinex and tether back early dec 2017.
See here
As we might know, it has been rumored for a very long time that tether might not have their money backed up by USD in their banks...
It was pretty widespread that it was printing of tether money basically pumping bitcoin price.
People would then argue why not dump tether and buy bitcoin. But from the market today, it seems that it is also not happening because bitcoin is still going down. The only possibility is money is flowing to fiat aka people are cashing out.
Is it then possible whales or some traders want to buy bitcoin below than $10k?
Something important here is that US regulators served bitfinex subpoenas back early dec 2017! It was before the ATH of $20k bitcoin. Then we come down to a few possible outcomes
Bitfinex did not have the money in dec but pumped bitcoin to 20K and cashed out from bitcoin to back their tether now. And as shown by Zhao Dong here verifying that [bitfinex has 3 billion USD in bank] (https://news.bitcoin.com/vouching-bitfinex-and-tethers-bank-accounts-hold-nearly-3-billion-usd/) But again, let me remind you that Zhao Dong has vested interests in bitfinex as a shareholder. Then all is good. But will we see $20k bitcoin again?
Bitfinex still did not have the money now and is cashing out of bitcoin explaining the crash.
Bitfinex has the money and all is good. Just waiting for a great audit.
And nah i dun believe facebook can affect bitcoin price just because crypto and ICO advertisements are banned. I think it is good in weeding out the naughty players in crypto.
What do you think?
Will we see $20K bitcoin again?