Bitcoin has fallen by about 10% from near $40,000 to now testing support with it strongly bouncing off $34,200.
Ethereum and most other cryptos share the same story, with bitcoin somewhat ranging as it tries to clear off $40,000.
One reason why it may well be able to so is because more checks are to rain on USA as Joe Biden, the president elect, unveils a $1.9 trillion stimulus.
There’s an increase in child credits, tax credits, jobless benefits and a $1,400 giveaway for every American, including the spouses of undocumented immigrants.
Where these trillions come from is of course not something we ask anymore as budgeting the books is old fashioned nowadays, but Biden hinted at tax rises for the wealthy.
When that’s to be expected is not clear. For now it’s the spending bit as UK locks down its border while the government there blame the voters for the lockdown that didn’t work in March and didn’t work in November still not working in January.
So UK and Europe maybe need another trillion stimuluses as well, with money growing on trees in the wealthy west as semiconductor shortages due to the lockdowns leads to shortages in car production.
For some however all this printing is not a problem. The problem is that Tether is tokenizing the devaluing dollar, and instead of keeping all of it into such worthless paper, they’re sending some of it to bitcoin.
Mainstream media loves all this because their owners receive a big chunk of the fiat block reward, this $2 trillion that Biden is borrowing from them.
However, a bust Tether would actually be good for bitcoin, maybe even parabolically good.
The last time there were real concerns about Tether as it was cut off the banking system and USDt went off peg, bitcoin and other cryptos rose significantly.
The reason is simple. All these people wanted to get off USDt. To do so, they bought bitcoin or eth with the USDt they held. Bitcoin being a scarce resource, there were only so many available so its price went up.
Making this a strange FUD because if some tether explosion was true, then you’d expect bitcoin’s price to go up quite a bit.
This FUD on the surface and seemingly the opposite of FUD in substance apparently applies to the latest round that has today, January 15th, as an important date because the NYAG injunction expires.
How they’ve turned that into a bad thing is a mystery because as it happens, that injunction which constrained tether’s ability to lend within its own organization, like to Bitfinex, no longer applies after today. So tomorrow tether is in a better position because its operations are not constrained by NYAG’s now expired injunction.
“Tether and Bitfinex produced more than 2.5M documentation pages in response to requests from NYAG. Discussions are progressing well. Business as usual after the 15th of Jan,” said Paolo Ardoino, Tether’s CTO.
Making this presumably good news, but this is the same crowed that claimed in 2018 bitcoin’s 2017 rise was due to tether, with Bloomberg of course stating so in a most serious tone.
The then $2 billion tether marketcap led to the then $800 billion crypto marketcap, Bloomberg effectively said, with it doing so by some sort of incomprehensible magic.
They just don’t want to believe the fact the people now have an exit and they are using it to escape their rigged game.
You can join them, or you can believe their lies. To do the latter is easy. To do the former, you play their game but in your turf, or since there’s many of us, in our turf.
You can give you money to these individuals who have far too much already and generally use it to control you, except Musk maybe, or you can give it to the world computer and hope it liberates you or at least some of you.
The fact that the latter option exists is discomforting to control freaks, like Bloomberg, but the current unfolding would have been very scare indeed if that option did not exist.
So keep throwing money created from nothing through your make-believe plain databases and keep blaming little tether, we can’t hear you any longer because we’ve built our own world where we can see your rigged excel sheets.