Forex today: markets are calm
The week has started without outstanding movements…
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
Latest news
NVIDIA beat earnings forecasts!
The giant chip maker exceeded analysts’ expectations. Even with a global GPU shortage!
OPEC may increase oil supply at meeting on March 4
OPEC will hold a meeting on March 4, where it should announce its decision on further oil output.
Risk on is back on market
The risk-on is back on the market as investors focus on the projections for a stronger-than-expected economic rebound and the Fed’s pledge to prolong support for the rest of the year.
Deposit with your local payment systems
