By : Wall Street bitcoin traders clearly DGAF about the Tether/Bitfinex scandal. As crypto investment firm noted on Twitter, institutional traders were more bullish than ever last week, with no short positions taken on in CME’s BTC futures market.
Wall Street Drops its bitcoin Shorts
10/Last week Institutional Investors went all in on – no short positions taken.Other traders maintained their earlier outlooks.While insignificant in terms,COT of AMs is a good gauge of the sentiment.Let’s see on Friday if they FOMO even harder today
— HASH CIB (@HASHCIB)
As massive a scandal as Tether and Bitfinex are mixed up in, even the compounded with are a drop in the bucket compared to the wiped from the stock market Monday due to the ongoing U.S. China trade war.
Despite – or likely because of – the devastating losses to an equities market highly exposed to political malfeasance, bitcoin’s price .
Adding to the bullish narrative, institutional demand for crypto appears to be rising. At the end of last month, Grayscale bitcoin Investment Trust inflows an all-time high. GBTC’s movements are a of institutional sentiment toward bitcoin.
Seeing Wall Street load up on bitcoin with all the usual suspects bodes very well for the crypto market. Seeing little institutional appetite for bitcoin shorts does too.
Tether’s All Tangled Up in Bitfinex Scandal
The Crypto Capital Corp losses and subsequent coverup are just the latest disappointment from Bitfinex, but now Tether Limited is part of the problem. | Image from Shutterstock
What makes this rising institutional demand even more notable is that it comes at a time when Bitfinex – one of the oldest cryptocurrency exchanges – has become in a major scandal, and Tether’s all tangled up in it as well.
New York Attorney General Letitia James is investigating Bitfinex for allegedly dipping into the reserves of controversial Tether to cover up a loss of $850 million that had been compromised by Panamanian payment processor Crypto Capital Corp.
A lawyer for Tether Limited on April 30th that each Tether coin is currently backed by only $0.74 in cash, coupled with short-term securities. That was a bombshell revelation that confirmed serious fears about Bitfinex and Tether.
But global crypto markets were unaffected. They actually had a big yawn to give to the Tether scandal. It barely registered as a blip in near the end of April, and we all know what happened .
Published at Wed, 15 May 2019 16:28:32 +0000
