BITCOIN'S BLACK WEEK: The cryptocurrency down up to 19%

The increase in interest on the bonds, a hypothesis about the identity of its creator and a New York tax affected its price. But a Robinhood report says crypto has a long way to go.
It was a black week for Bitcoin, the most popular “crypto”, which on Friday 19, when its price passed USD 54,000, had exceeded the barrier of one trillion (million million) of market value.  As of Monday 22, however, its price went downhill and fell yesterday to USD 44,451, to recover and close at USD 47,300, 19% below the record of USD 58,354 that it had reached in the pre-market at the end of  last week.

During that weekend, Elon Musk, one of the two richest men in the world and Tesla's main shareholder, whose decision to buy $ 1.5 billion in bitcoins had given him a great boost, had tweeted that the price of Bitcoin seemed “a  little high ", also adding the mocking expression" lol "(acronym for" loughing out loud ", translatable as" thunderous river ").

 And in the week bad news was added.

The first was the increase in the rates of the US Treasury bonds and certain manifestations of the Federal Reserve, which affected the price of shares in the main exchanges and promoted a “flight to quality” that put even greater pressure on assets. riskier, and crypto, and Bitcoin in particular, have a very high volatility.

A second blow was a reference from Coinbase, a cryptocurrency transaction platform that in the documents it presented to be listed on the Nasdaq, the most “technological” index on Wall Street, included a negative hypothesis about what would happen to the price if its original mystery was known, who is Satoshi Nakamoto, the person or group of people who created Bitcoin, of which just over 18.5 million units have been “mined”, an amount that will stretch to 21 million in the year 2140, when the last Bitcoin is supposed to be minted.

According to Coinbase, which came onto the market with a valuation of more than USD 100,000 million, if it were known who he or who “Nakamoto” is, a Big Bang would occur capable of destabilizing the entire crypto market. Something like a supernova turning into a black hole.

In the presentation, Coinbase said that Nakamoto's personal reserve, of more than one million bitcoins, exceeds 5% of the current stock in circulation and can move, by itself, the world market of the cryptocurrency, which is also equivalent to two thirds of the value of all crypto in circulation, of which a study by the US Congressional Investigations Office identified more than 5,000 "brands" in April 2020.

The third blow, potentially stronger, but which so far went relatively unnoticed came from the side of Justice. The New York attorney, Letitia James, imposed a fine of USD 18.5 million, prohibited her from operating in the State and described as “fraudulent” the operations of Tether, a “stablecoin” supposedly linked to the price of the dollar, and a Partner platform, Bitfinex, seriously suspected of manipulating the value of Bitcoin.

According to the investigation, hundreds of millions of dollars that passed through Bitfinex (whose owners are the same as Tether) were “lost” in Panama, in another cryptocurrency processing center. The prosecutor's presentation cites an academic study that links Tether purchases to "sharp swings" in Bitcoin prices.

Worse still, the research found that two-thirds of the audited Bitcoin transactions in a certain 24-hour period were made with Tether, an enormous manipulation capacity if one also takes into account that the amount of Bitcoins is quasi-fixed, while Tethers are issued at ease and piacere. In fact, 34,000 million units supposedly “backed” by dollars have already been issued, support that the investigation found in fact non-existent.
James took Tether out of the game (which, paradoxically, is the infinitive of the verb "tie", suggesting an earthly relationship, as opposed to crypto volatility) and Coinbase is seen as a much more reliable platform to operate in cryptocurrencies, but it always remains  the concern of how many other fraudulent operations there may be around.  In fact, Nouriel Roubini, the "Doctor Catastrophe", had already mentioned the manipulation of Tether and pointed out, living up to his gloomy predictions, that Bitcoin, which does not even recognize the status of "currency", is just another bubble destined  to explode.

Beyond the swings and alerts, however, Bitcoin seems to have a long way to go, as new players join. In this regard, and in a vein totally opposite to the blows that the cryptocurrency received this week, Robinhood, the preferred platform of retail investors that made large investment funds tremble, issued a brief report predicting a long life for Bitcoin to the extent that “ join the mainstream ”and be accepted by more and more companies and people.

In fact, the report notes that more than three million new users traded in cryptocurrencies in January and slightly less in February, when the monthly maximum in 2020 had been 401,000 new users and the average was 200,000 per month.

In addition, the study points out (see graphs) that the average value of the transaction in cryptocurrencies has a slight and stable upward trend, which would suggest a market in the process of “maturing”.
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