The cryptocurrency market is going through another bearish phase this month as the best cryptocurrencies lost the majority of their gains made in the month of October.
Bitcoin (BTC) failed to hold a major support of $55,000, and is currently trading at $54,300.
Tether is often accused of printing additional USDT to pump the Bitcoin market.
Although there is no conclusive evidence for the claims, the debate over the Tether reserve adds fuel to the fire.
The latest $1 billion USDT issuance is a similar controversy especially given the hemorrhage of the cryptocurrency market.
Tether printed $1 billion worth of USDT on November 26, the same day that the crypto market plunged sharply due to the novel coronavirus outbreak that sparked fears in the stock market.
A Twitter account named “Mr. Whale” claims that Tether’s treasury minted a billion dollars out of nowhere.
— Mr. Whale (@CryptoWhale) November 26, 2021
The controversy also comes at a time when US federal agencies have demanded more power from Congress to crack down on the stablecoin market.
Tether has long been a major concern to regulators, given its past record of mismanaging USDT reserves.
The stablecoin issuer was recently fined $41 million by the “CFTC” for misleading claims.
However, this wasn’t the first time Tether had found itself on the receiving end of regulators.
Earlier this year, Tether settled a long-running case with the New York Attorney General’s Office (NYAG) for mismanagement of funds.
Tether was fined $18.5 million and banned from providing any service in New York.
Will Bitcoin Price Rise After Tether Is Released?
Bitcoin price showed a slight recovery earlier today, reaching a daily high of $55,329 before bouncing back below the $55,000 support area once again.
The top cryptocurrency has lost more than 20% from its all-time high of $68,789 in October.
With November turning bearish once again, it appears that the key price targets at $98,000 are out of the picture, at least for the time being.
The analyst nicknamed “Plan B” admitted that Bitcoin’s “Stock-to-Flow” model is far from its expected November close.
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