Is Tether Manipulating Bitcoin Again? A Week in the Markets 14.08.18

Is Tether manipulating Bitcoin again? Who controls Tether? Is Bitfinex pulling the strings? Did Tether release tokens to avoid Bitcoin dropping to permanently low prices? Join me for the weekly analysis.

The last week has seen a massive slide that started with the confirmation that the SEC was postponing the latest ETF decision until September 30, which then escalated into a full bear attack on the market.

So, see the first drop on the market cap on August 8 and 9, and then another cliff fall drop on the eleventh as market confidence collapses. Bitcoin had the exact same behaviour as the market cap, and  was hovering just  above the $6000 mark.

At that point, there is even speculation from some commentators that if it drops below the lower support level of $ 5800, it maybe game over or heavy damage long-term for Bitcoin’s price. And then Tether make a decision to release $50 million worth of Tether tokens on August 11 and boom, a sudden recovery of $300 and we gently rise away from the heavy danger zone for Bitcoin.

The thing to notice is that Tether has dropped its market cap by $300 million over recent times as general trading interest wanes with a long bear market but still make an out of the blue decision to pump 50 million more tokens in.

Add that to the constant controversy of never having a real audit on the reserves held for Tether (remember it should be $ 1 for every token that should exist in a bank account) and this story still remains one of the most controversial including how much control Bitfinex has over the currency.

Ok, across to the rest of the market, and basically apart from some speculative action to pump some coins by some groups in an adverse market nearly everything has been suffering losses across the week.

Ethereum having a very hard week in all ways as the network clogs up due to a limited amount of contracts generating inordinate amounts of traffic,  a wipeout across the week of 21% down now to just above $300.

Ripple, successfully fighting off one of its court cases but on the market seeing a massive haircut taking them down 28% to just above 30 cents.

Bitcoin Cash sitting between in losses, managing to keep the seven-day loss at  16%.

EOS, dangerously low around the $5 mark after losing 27%.

Stellar, bucking the trend and managing to maintain most of their value for the week, and taking a marginal loss on paper.

IOTA finding themselves as the week’s biggest loser, as not content with a bear market, not content with the technical problems surrounding the tangle recently, making it be quite difficult to find some coins, they went full out and exposed their internal conflicts at the board level in public, result in a nearly 40% devaluation. Wise moves from the team.