What a week for Bitcoin (CCC:BTC). After the leading cryptocurrency hit a new all-time high of over $ 58,000, it crashed seriously. Today news suggests that there is a floor here. With that in mind, what are the latest bitcoin price predictions?
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Investors should start with a brief summary of the facts. In the past few weeks, all the catalysts have supported a historic rally in Bitcoin and other cryptocurrencies. We launched the first Bitcoin exchange-traded fund in North America, and a handful of major financial institutions are announcing crypto integrations. Celebrities continued to hit the table for BTC and all kinds of altcoins. Then it quickly got worse. Elon Musk said Bitcoin and ether (CCC:ETH) were overrated and experts called for a withdrawal. That withdrawal came.
Today we may have found a bottom. After hitting a 24-hour low below $ 45,000, Bitcoin has started to turn around. It currently trades for just over $ 47,000. That’s still far from its high, but it does suggest a recovery is imminent quickly.
So what could be behind this turning point?
One theory is that in the next few days, a new settlement outside of New York will restore the Crypto Bull Run. In essence, New York attorney general Letitia James announced a settlement on an ongoing case Bitfinex and rope (CCC:USDT). For strangers, Bitfinex is a crypto exchange. Tether is a now controversial cryptocurrency that reflects the US dollar. As early as April 2019, New York accused Bitfinex of using Tethers’ funds to cover losses of $ 850 million.
Bitcoin Price Predictions: The Bitfinex And Tether Boost?
How is this good news? And how does it support bullish bitcoin price predictions? Bitfinex and Tether have agreed to stop doing business with New Yorkers and will now face fines totaling $ 18.5 million. Also, the settlement agreement states that Bitfinex may not be able to recover lost funds.
Well, Bitfinex and Tether walked away without admitting any wrongdoing. Although general support for cryptocurrencies is growing, many still consider it a risky commodity. Given the widespread use of tether as a stable coin, any other settlement outcome could have seriously damaged. As Omkar Godbole wrote for CoinDesk, a major loss of trust was at stake. It looks like the chance for that situation is now in the rearview mirror.
Add to the conversation about a $ 1.9 trillion stimulus package and Federal Reserve support for such relief funding, and the case for cryptos should be clear. Keep an eye on the history of Bitfinex and Tether and keep an eye on the Bitcoin price predictions. Things could work out again soon.
At the time of this writing, Sarah Smith held positions (either directly or indirectly) in any of the securities identified in this article.
Sarah Smith is a web content producer for InvestorPlace.com.