MG Network

our website isOn Vacation

In the mean time you can connect with us with via:

Copyright © Money Grows Network | Theme By Gooyaabi Templates

Money Grows Network

Archive

Powered by Blogger.

Welcome To Money Grows Network

Verified By

2006 - 2019 © www.moneygrows.net

Investments in financial products are subject to market risk. Some financial products, such as currency exchange, are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only.

Popular

Pages

Expert In

Name*


Message*

A criminal case for the entire cryptocurrency market. Tether under attack

The bitcoin exchange rate quickly fell by half after a rapid growth that occurred amid speculation about Amazon, which allegedly would start using bitcoin in settlements this year. However, by the evening, the company's representatives said that no one is going to take such steps yet and they do not plan to accept the world's first cryptocurrency for payment, at least for this year.

However, the biggest risk for bitcoin this week may be a hawkish surprise from the Federal Reserve. Analysts suggest that this is the reason why yesterday we were unable to take the psychological mark of 40,000. The Federal Reserve System will announce its decision tomorrow, but it is unlikely that anything significant will change in its monetary policy, so do not expect surprises in this direction, which can help strengthen the position of bitcoin.

In my recent reviews, I have written several times about stablecoins and what awaits them in the near future. And now, apparently, this future has come. Let me remind you that stablecoin is a form of digital cryptocurrency with a fixed price, usually completely tied to one dollar or other currencies in which they are issued. At the end of May this year (against the background of the peak of the cryptocurrency market), the total market capitalization of stablecoins, including those offered by cryptocurrency firms Tether and Center, exceeded $100 billion.

analytics60fff08b586e7.jpg

Such a turnover of funds that are not controlled by anyone clearly causes concerns on the part of the regulator. Recently, lawmakers and Federal Reserve officials have repeatedly expressed concern that some consumers will not actually be protected if one of the firms that produce stablecoins suddenly starts having problems. They are also worried that the growing size of stablecoins creates a situation where, a huge number of coins equivalent to the US dollar are exchanged without affecting the US banking system, which creates a good ground for financing criminal schemes.

And now the US authorities have moved from talks to actions. According to the latest reports, an investigation has been launched against Tether in the United States, in which it will be established whether the leaders of this company committed bank fraud related to this token. A potential criminal case will have serious consequences for the cryptocurrency market. The authorities of many countries are now seriously concerned about their own digital currencies, and companies like Tether are standing in their way.

Tether's key role in the crypto ecosystem is well known as the token is widely used to trade bitcoin. But the Department of Justice's investigation focuses on events that took place many years ago, when Tether was in its early stages. Apparently, there is nothing to catch on to now. In particular, federal prosecutors are investigating whether Tether was hiding cryptocurrency-related transactions from banks. As I noted above, the criminal charge will be one of the most significant developments in the US government's fight against virtual currencies. Tether is currently the most popular stablecoin. The importance of the token for the market is obvious: about $62 billion worth of Tether is in circulation, and they account for more than half of all transactions with cryptocurrencies.

"Tether regularly engages in an open dialogue with law enforcement agencies, including the Department of Justice, as part of our commitment to cooperation and transparency," the company said in a statement.

However, both the US Treasury and the Federal Reserve are among those interested institutions that believe that this kind of virtual currencies could threaten financial stability.

analytics60fff09e325a2.jpg

As for the technical picture of bitcoin, yesterday's sharp breakout of the $35,900 level and growth to the $39,000 area leaves quite a lot of hope that the bulls will once again test resistance at $41,100 in the near future. A breakout and exit beyond this range will open a straight path to the highs of $46,700 and $52,000. So far, we are watching the return of pressure on bitcoin. The bulls will need to try not to let BTC go below the support at $36,700, for which an active struggle is now underway. If the rate goes below this level, most likely, the pressure on the world's first cryptocurrency will return, and we will see an update of support at $33,300 and then a retest of $29,200, which will be the last blow to the hopes of buyers for the rapid growth of the cryptocurrency. So far, everything is turning in favor of the bulls. Let's see what happens to volatility next.

The material has been provided by InstaForex Company - www.instaforex.com