Bitfinex Premium continues to "rally" even after bitcoin (BTC) has stabilized

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If you have checked Crypto Twitter or * insert your favorite commercial publication * in the last 72 hours, NewsBTC is confident that the news of Tether and Bitfinex, as well as the effect of this debacle on the price of Bitcoin (BTC ), have been broadcast. your radar. But if you're not aware, here's a brief recap:

On Thursday, the New York Attorney General's Office (NYAG) issued a press release in which it was reported that Bitfinex and Tether were breaking the New York law by participating in activities "likely to have defrauded" local investors. cryptocurrency. Letitia James, the Attorney General herself, explained that the two companies may have "concealed" the "apparent loss" of $ 850 million, a result of the loss of access to the drug treatment company. Crypto Capital payment. funds (supposedly seized by Polish, Portuguese and American governments).

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In a 23-page document, Tether transferred $ 625 million to Bitfinex over the last six months. And just recently, Bitfinex would have returned the funds but still had a credit line backed by $ 700 million iFinex shares, opened with Tether.

Bitfinex Premium reaches 6.75%, Bitcoin stabalizes

As a result of this news, investors immediately became panicked. Bitcoin was sold in panic, bringing BTC cash value back to $ 4,900 on some exchanges; Bitfinex users hastened to withdraw their holdings, which resulted in the massive exodus of so-called BTC and Ethereum, worth $ 100 million, from stock market portfolios.

Although the storm has calmed down since then, investors still seem to be on high alert. According to data from Marty Bent, a content creator focused on bitcoin, Bitfinex's premium is now $ 350, or 6.75%. This means that on Bitfinex, BTC is trading $ 350 more than platforms that do not get involved in Tether.

This bonus was attributed to three factors: the fears of Bitfinex users that Tether collapse, the propensity of Bitfinex users to withdraw their assets and the value of USDT (Bitfinex USD pairs are denominated in USDT). As the USDT has almost reached parity with the dollar, this increased premium could imply that investors are still looking to move their Bitfinex-based funds to greener horizons.

While the Bitfinex premium continued to rise as investors sought to withdraw their funds en masse, the BTC quickly stabilized. This movement, or lack of movement, can be attributed to the fact that many conclude that Bitfinex and the USDT are probably not in immediate danger, with the exception of the risk of funds being lost.

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