Can A Court Case Against Tether Have A Bad Impact On Bitcoin? - Kakiforex.com - Financial Market Media No. 1 in the World Can A Court Case Against Tether Have A Bad Impact On Bitcoin? Can A Court Case Against Tether Have A Bad Impact On Bitcoin?
InstaForex

August 3, 2021

Can A Court Case Against Tether Have A Bad Impact On Bitcoin?

 Last week, the crypto community was shocked by reports that Tether was facing a court case when the Justice Department opened an investigation paper on the USDT as well as U.S. banks. Thus, this has raised the question, how will this affect the price of bitcoin.


Several analysts have appeared to comment on this. According to Bloomberg, the focus of the investigation is on Tether’s attitudes in transactions and finding correlations between them and banking partners. Especially the extent of U.S. bank knowledge. about Tether Limited’s business and the use of USDT to buy other crypto assets such as bitcoin (BTC) and Ethereum (ETH).


Bloomberg states that if it is convicted of a criminal case then it has the potential to have far -reaching implications in the crypto market. As is well known, Tether plays an important role in the crypto market with $ 62 billion worth of outstanding and supports more than half of Bitcoin trades.



No wonder why the question arises, will the DOJ investigation into Tether leading to legal violations will have an impact on the price of bitcoin? According to analysts the liquidity crisis for Bitcoin and crypto assets will adversely impact demand and at the same time push crypto prices to fall further .


However, it should be noted that this is only a view from Bloomberg analysts and so far there have been no details on the role and responsibilities of U.S. banks. in the matter under investigation, which is of concern to the DOJ.


Furthermore, last April an independent insurance company proved Tether stablecoin was “fully pegged” by the US dollar.