The unthinkable happened the day before: the world-renowned Bitcoin derivatives trading platform BitMEX has been targeted by the CFTC on several charges, and the company’s CTO has been arrested in the case.
Now, the worst possible scenario could be on the horizon: the United States regulator could target Tether and parent company Bitfinex in the next step. So what effect does this have on Bitcoin? How could it damage the structure of the cryptocurrency?
Cryptocurrency Giants Feel the Pressure
The cryptocurrency market is currently experiencing a moment of uncertainty where, surprisingly, Bitcoin holds up well. BitMEX, the most dominant derivatives trading platform for the past few years, has faced serious charges from the US Commodity Futures Commission (CFTC) and the US Department of Justice. As a result of the negative news, the Bitcoin price has fallen, but has managed to hold its place above $ 10,500 so far. No matter how high the price of the crypto asset is, sentiment is not working.
Cryptocurrency valuations are driven mainly by speculation, and after the news came out, market participants took to Twitter to do what they love to do most: speculation.
A wide variety of conclusions have been drawn, including “institutional racism,” “Bitcoin is dead,” and a host of other pessimistic ideas. But there is one scenario that could be particularly bad for the entire cryptocurrency market.