Weekly Crypto recap w/ NewsCrypto
Welcome back, NewsCrypto enthusiasts! It's time for another edition of the NewsCrypto newsletter.
Today we are going to discuss the possibility of Tether USDT collapsing and what's next for Bitcoin.
What's on the menu today?
1. Breaking Crypto News
2. Crypto Fear and Greed Index
3. BTC TA Analysis
4. Is Tether Going To Collapse?
5. Funniest Meme of the Week
News Recap
· Environment-friendly flare gas powered Bitcoin mining site to open in Argentina
· US House of Representatives has overturned SEC's guidance blocking banks from custodying crypto assets
· JPMorgan, Largest Bank in the US, Announces It Owns Bitcoin Spot ETF Holdings
· Tether's stablecoin operations may be risky according to Deutsche Bank
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Crypto Fear and Greed Index
Bitcoin TA Analysis
Bitcoin Daily Time Frame
On a daily chart, there is not much to talk about. $BTC swept the lows which pushed the RSI to the levels last seen in January of 2024 when the exact same pattern appeared.
Bitcoin 4h Time Frame
On a lower, 4h, time frame it's apparent Bitcoin is fighting with the "Monday low" resistance and that it found support at the "Monthly open". The bottom of 4h OB with confluence of the range's low is a strong support so if the dump comes there should be rebound around this area or it will turn into strong resistance.
Is Tether Going To Collapse?
Deutsche Bank Research has recently sparked a significant discussion in the financial sector with its in-depth analysis of stablecoins, particularly Tether's USDT. As stablecoins increasingly come under scrutiny for their roles and reliability in the crypto ecosystem, this examination highlights crucial issues regarding future stability.
Historical Context and Market Impact
The study reviewed 334 currency pegs from the 1800s onward, revealing that only 14% remained stable over time. This finding raises substantial concerns about the future reliability of stablecoins like USDT, which are designed to maintain a consistent value relative to traditional currencies, such as the US dollar.
Stablecoins like USDT are critical in the cryptocurrency market, offering traders a stable asset to counteract the typical volatility of crypto markets. USDT’s market cap has surpassed $100 billion, often outpacing Bitcoin in daily trading volumes, underscoring its significance in the crypto ecosystem.
Transparency and Regulatory Challenges
Deutsche Bank's report raises questions about Tether's stability and transparency, citing previous regulatory issues that have clouded its reliability. For instance, Tether faced a $41 million fine from the CFTC in 2021 and settled with the New York Attorney General for $18.5 million over misrepresentations of its reserve holdings.
These incidents underscore ongoing doubts about the robustness of Tether’s financial backing and its operational integrity. Historically, stable currencies have been characterized by strong reserves, high credibility, and stringent regulation—attributes leading stablecoins, including Tether, reportedly lack.
Industry Reactions and Future Implications
In February, JPMorgan also expressed concerns regarding Tether’s dominance, with USDT holding over 69% of the stablecoin market share, indicating substantial influence and associated risks. Despite the criticisms and potential regulatory threats, Tether’s CEO has strongly defended the company’s operations, asserting that USDT remains effective in fulfilling its market role.
Funniest Meme of the Week
