The price of Bitcoin (BTC) was steadily headed above the $5,600 level when an additional series of worrying news arrived from Bitfinex and Tether (USDT). The connected companies related to the most influential stablecoin have been under suspicion in the past for influencing BTC trading by various means.
During the most recent rally, Tether injected liquidity on the markets, either by emptying out its Treasury wallet to boost exchanges or by printing a new tranche of 300 million USDT on Thursday.
Just a day later, trouble was looming again, creating worries that Bitfinex and Tether may lead to problems for the entire market. In the past, fears about Tether arose while the coin was much less influential.
Bitfinex Covering Up $850 Million Losses: Reports surfaced of Bitfinex potentially covering its losses from last October by using up its Tether (USDT) supply. In the past few months, Bitfinex returned most of its supply of USDT to the Treasury wallet. From there, the coins were re-issued and sent out directly to other exchanges. At the same time, Teth...