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📈 Price Predictions
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Tether Controversy Continues, But So Does the Bitcoin Rally

  • Thomas Hughes
    📈 Price Predictions

    A recent report published by Bloomberg states that Tether “has the billions it promised”, indicating that USDT may be backed 1-to-1 by USD after all

Tether Controversy Continues, But So Does the Bitcoin Rally
Cover image via u.today

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

A recent report published by Bloomberg states that Tether “has the billions it promised”, indicating that USDT may be backed 1-to-1 by USD after all.

In the past, some sources claimed that USDT is not backed entirely by US dollars and this spurred allegations of misconduct and price manipulation (some voiced concern that BTC’s rise to $20,000 was fueled by dishonest Tether trades). It is also believed that this controversy played a part in Bitcoin’s 2018 bear market.

Bloomberg reported that “$2.2 billion was in Tether’s account at Puerto Rico’s Noble Bank Ltd. on January 31. That same day, 2.195 billion Tethers existed, according to data compiled by Coinmarketcap.com”. However, this doesn’t prove that Tether has been continuously backed by US dollars and doesn’t solve the price manipulation allegation, which is still being investigated by the U.S. Justice Department.

Chart Analysis – BTC/USD

BTC/USD chart

It seems there’s no stopping the Bitcoin train as the digital currency continues higher, largely unfazed by Tether concerns or by overbought levels shown by technical indicators. It added almost 8% in the last 24 hours and more than 20% over the last 7 days, breaking the key level at $4,000 and trading at $4,160 on Bitfinex at the time of writing.

The short to medium term bias is clearly bullish and the recent break of 4000 shows that buying pressure is still high, with a potential to push BTC/USD into 4480 – 4500. That being said, the Relative Strength Index has broken above its 70 level for the third time in a short while, which is an indication that a bearish retracement will soon follow.

This potential correction can find support at 4000 (or at 4100 if it goes higher before retracing) but as long as this barrier still stands, we favor a climb into 4500 over the next few days.

Support zone: 4000

Resistance zone: 4480 - 4500

Most likely scenario: push into 4500 area (possible retracements until that target is reached)

Alternate scenario: move below 4000 and choppy price action

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About the author

Thomas Hughes is an executive editor of U.Today. He is a skilled cryptocurrency trader and technical analyst deeply immersed into the cryptocurrency & blockchain technology area.

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Jim Cramer Suggests WeWork Isn't Worth Anything Because of Its Immense Debt

  • Alex Dovbnya
    📰 News

    SoftBank is expected to breathe new life into struggling WeWork, but Jim Cramer says that the company is plagued by a massive debt

Jim Cramer Suggests WeWork Isn't Worth Anything Because of Its Immense Debt
Cover image via u.today

Market analyst Jim Cramer told The Street that WeWork is really negative worth because of all its gargantuan debt. 

Having someone having leased is great idea, but it was, it was a leasing company, and I'm not going to diminish the fact that it was, at one point this fabulous story because it was growth, growth, growth, but it also was debt, debt, debt. 

On Oct. 22, CNBC reported that SoftBank would take control of WeWork while former CEO Adam Newman would maintain a small double-digit stake in the workspace rental company. 

It is expected that SoftBank would be able to get WeWork on a path to profitability, something that Uber and Lift, which recently launched their respective IPOs, are struggling to achieve. The Japanese giant could fork out an additional $5 bln to fund the embattled leasing company. 

Newman will reportedly walk take a cool $1.7 bln as part of the deal that would put WeWork's valuation to $8 bln on a pre-funding basis (a small fraction of the $45 bln it was worth before its failed IPO). 

WeWork was supposed to go public in September after confidentially filing for an IPO back in April, but its the hype around its public offering gradually started to dwindle and ended an in an epic fallout.  

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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