Bitcoin Rallies Up, USD Takes Breath
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
Bitcoin faces risks as traders lose faith in Tether
- Elon Musk tweeted that the BTC and the ETH are too high.
- JPMorgan claimed that the loss of confidence in Tether put bitcoin at risk to fall in the short term.
- JPMorgan still set its long-term target for Bitcoin at $146 000.
Tether & Bitcoin
According to JPMorgan, the BTC market may experience liquidity shock if traders lose faith in Tether (USDT). What is Tether? It is a stablecoin that is used in transactions to move between cryptocurrencies and fiat money. Tether’s value is linked to the USD on a 1:1 basis. Besides, in comparison to other cryptos such as the BTC that are “mined,” Tether is created on customer orders. As a result, some doubts appeared that Tether was used to increase the value of Bitcoin. According to JPMorgan, nearly 50%-60% of Bitcoin traded for USDT since 2019. Therefore, the loss of confidence in Tether may cause a fall in bitcoin’s value.
Forecast
Indeed, there are some risks for Bitcoin in the short term, and the largest one is Tether. However, these risks are still low as cryptocurrencies are rising no matter what with major banks and big companies entering the crypto market. Elsewhere, in the last decade, crypto markets have yielded higher returns than most traditional investments. Finally, after presenting some risks for the crypto market, JPMorgan still claimed that its long-term target for Bitcoin is $146 000.
Gold & Bitcoin
“Bitcoin’s competition with gold as an “alternative currency” will likely continue as millennials become a more important component of investors’ universe and given their preference for ‘digital gold’ over traditional gold,” said JPMorgan.
You can trade ETH and other cryptocurrencies in the FBS Trader app.
Don't know how to trade cryptocurrencies? Here are some simple steps.
Similar
US Inflation Rate, Apple's Event, and More News
The US will reveal its Inflation Rate, while Apple will launch iPhone 13 today. How will the markets react? Let’s find out.
Japan’s Nikkei 225 hit 30,000 and other hot news
Japan’s Nikkei 225 hit 30,000 for the first time since April. Bitcoin topped $52,000. El Salvador bought 400 coins, which are worth nearly $21 million at current trading levels.
Latest news
What Will Bring the Core PCE Price Index Release?
The US Bureau of Economic Analysis will publish Core Personal Consumption Expenditures (PCE) on May 27 at 15:30 GMT+3.
The Big Release for the USD
The United States will publish the Preliminary GDP on Thursday, May 26, at 15:30 GMT+3.
Will New Zealand’s Central Bank Boost the NZD?
The Reserve Bank of New Zealand will publish a monetary policy report and make an update on the interest rate on May 25, at 05:00 GMT+3.
