Bitcoin (BTC) May Suffer if BitFinex Falls, Controls 5% of Trading Volumes

Dalmas Ngetich

Last Updated: June 11, 2024 9:14 pm

2 mins read

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Bitcoin (BTC) stable above $5,200
Resolving NY OAG and iFinex differences would be bullish for BTC

The company behind iFinex should quickly resolve their dispute with the New York Office of the AG before fines negatively affect BitFinex and Tether. In a cascade, hefty fines would dent the exchange’s reputation, and because it is where most Bitcoin (BTC) related trading happens, prices would likely drop.

Bitcoin Price Analysis

Fundamentals

The space is split, and factions are forming around BitFinex, Tether and the parent company, iFinex. With NY OAG breathing fire on iFinex, saying will sue the parent company for alleged fraud; enthusiasts, as well as concerned investors, are going back to the drawing boards. Worse are threats issued by the NY office saying it will dig up more dirt, heaping pressure on the exchange and Tether Limited, which in turn could be catastrophic for asset prices.

If it turns out to be washing linen in public revealing all of BitFinex malpractices, then we shall see more “coin run” from the exchange. Note that despite the accusation of wash trading and now revelation of liquidity problems, the on-ramp is vital in the crypto scene.

1/ Is the #USDT situation going to cause more downside? Based on recent news, it is not too likely. Why? It is a collateralized loan backed by shares from the parent company #iFinex. For now, this provides enough safety for smart money to stay in USDT (market cap remains high). pic.twitter.com/nCbyoYMVtt

— CryptoKea (@CryptoKea) April 26, 2019

As it is, BitFinex is one of the most liquid exchanges, a trusted on-ramp by OpenMarketCap, where Bitcoin’s daily average volume exceeds $44 million. Therefore, as we can see, any shock that would cast BitFinex and USDT in a bad light would suck liquidity out of the exchange triggering unnecessary liquidation.

That no doubt may even wipe gains of early April. Furthermore, since Bitcoin (BTC) is under sell pressure unless when prices close above $6,000, iFinex should resolve their differences with NY OAG before fines affect asset prices.

Candlestick Arrangement

Despite the drama, Bitcoin (BTC) bulls did reverse Apr-25 losses. Even so, Bitcoin (BTC) is “hanging there” as prices stabilize around $5,200 according to data streams from OpenMarketCap. As it is, BTC is technically bullish. That’s from what we can glean from the weekly chart.

Besides, the fact that the double bear pattern of Apr24-25 didn’t drive prices below $5,000 is bullish. Moving on, every dip is technically another buying opportunity.

In the short-term, there is an opportunity for traders to load up at spot rates with stops at Apr-25 lows at $5,000—that’s just below the middle BB. However, any sell-off driving prices below $5,000 could see BTC drop to $4,500 in a typical retest phase.

Technical Indicators

Because of Apr-25 losses, the bar anchors our analysis. It has high transaction volumes—21k against 11k. Therefore, in line with our BTC/USD trade plan, bulls will be in control once prices rally past Apr-25 highs with high volumes above 21k. On the flip side, any slump with similar or better volumes would catalyze a sell-off towards $4,500, invalidating our short-term plans.

Chart courtesy of Trading View

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.