Bitcoin price crash: Resumes its bloodbath! Cryptocurrency could drop 80% with Bitfinex and Tether critics

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Bitcoin resumes its bloodbath. The crash in cryptocurrencies resumed once again. Bitcoin even fell below $10,000 once again. This is a fall of more than 50% from the peak. The latest trigger seems to be the allegations against the cryptocurrency tether. Investors are worried that Tether is actually not backed by US dollar as was claimed by the developers of the cryptocurrency.

Read More: Cryptocurrency Falls Again: Bitcoin, Ethereum, Ripple, Litecoin, NEM, IOTA, Stellar will go deeper tomorrow! What time they will come back?

Tether, Bitfinex is false

More and more users are actually coming out against this cryptocurrency. If indeed, such a large cryptocurrency which is backed by the founder of a cryptocurrency exchange as well, Bitfinex is false, many investors would actually lose confidence in the cryptocurrency space. This would again lead to problems in the cryptocurrency space. This is one of the main reasons why the confidence in cryptocurrencies is consistently decreasing as well. Most of the investors do not know what they should believe in the cryptocurrency space and what they should not believe. Even when the founders of some of the most reputed cryptocurrencies are caught lying to the investors, they are actually not sure whom to believe as well.

Read More: Is Tether a scam cryptocurrency? ‘Scam token may be fueling Bitcoin’s rise, without this, Bitcoin price would collapse!’

New investors are not coming up in such large quantities

Moreover, after the recent astronomical rise in Bitcoin prices, the flow of new money in into Bitcoin is not able to sustain the prices of Bitcoin. The truth is that according to an estimate at least $18 million need to flow into Bitcoin quickly in order to stabilize the prize as well. The problem is that the new investors are not coming up in such large quantities. Moreover, when you’re looking into tether you would realize that the amount of US dollars which they claim to have as a backing for the cryptocurrency is not possible to have without any kind of notice. That is why, either they need to create a third-party audit in order to assure the investors or they would actually lose the interest and the confidence of the investors.

Read More: SEC says, the outlook is not rosy for Bitcoin, Ethereum and cryptocurrency ETF’s

Investors would not trust the other cryptocurrencies as well

The problem is that if that happens, most of the investors would not trust the other cryptocurrencies as well. Owing to this very reason, it would be a losing situation for not just that particular cryptocurrency but the other cryptocurrencies which are legit as well. This is one of the main reasons why investors are not holding the cryptocurrencies as it would lead to another huge crash as well. This is leading to the price of not only Bitcoins to fall but the other cryptocurrencies like Ethereum as well as ripple are consistently falling as well.

Read More: Dotcom Bubble, Housing Bubble… Is the Cryptocurrency Bubble next? The future of Bitcoin, Ethereum and Ripple

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.

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