Bitcoin Drops on Tether Subpoena

Crypto prices dropped across the board as news emerged that the U.S. government subpoenaed Bitfinex and Tether. One coin is selling for $9,882 right now, down from $11,186 last week. Litecoin followed big brother lower again and is quoted at $161 dollars right now.

Bitcoin Drops on Tether Subpoena

Bitcoin prices dropped over 10 percent today after Bloomberg leaked a rumor that the U.S. government subpoenaed both Bitfinex and Tether. The outstanding supply of tethers snowballed since December of last year, from below 1 billion to over 2.3 billion. In other news yesterday Tether announced that they were terminating the audit that was expected last year:

‘Given the excruciatingly detailed procedures Friedman was undertaking for the relatively simple balance sheet of Tether, it became clear that an audit would be unattainable in a reasonable timeframe,” Tether said.’

According to some speculators, the two companies are printing tethers without USD backing to support crypto prices. More on this controversy HERE.

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The technical picture is unchanged. Bitcoin is still in a downtrend on the daily charts. To end it the bulls will have to push us above the $13,000 handle. A break below the $9,211 swing low could exacerbate the losses. On the longer-term charts BTC/USD is still keeping the bullish bias.

Litecoin Follows BTC

Litecoin prices continue to follow BTC lower. Both BTC/USD and LTC/USD are down around 10 percent today, with litecoin dropping by $18 to $161.

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Here too we have been in a downtrend for some time. A breakout above the $214 swing high is needed to end it. A move below $160 may open the door to the the next important swing low at $137 dollars. A breakdown below here could lead to more LTC losses. Similarly to BTC, on the longer-term weekly and monthly charts LTC/USD is in an uptrend. However as we’re said many times previously ending these long-term trends may take many weeks/months of downward movement.

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Petar Kotevski

Petar is a forex trader and writer with 9 years of experience in financial markets. He has been following bitcoin since 2010. A year ago, as the BTC market matured, he started getting more involved by writing articles on bitcoin and other alternative currencies.

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