By CCN: Wall Street bitcoin merchants clearly DGAF in regards to the Tether/Bitfinex scandal. As crypto funding agency HASH CIB famous on Twitter, institutional merchants had been extra bullish than ever final week, with no brief positions taken on bitcoin in CME’s BTC futures market.
Wall Street Drops its Bitcoin Shorts
10/Last week Institutional Investors went all in on #bitcoin – no brief positions taken.Other #CME merchants maintained their earlier outlooks.While insignificant in #BTC phrases,COT of AMs is an effective gauge of the sentiment.Let’s see on Friday in the event that they FOMO even tougher as we speak pic.twitter.com/A4yPcbesa5
— HASH CIB (@HASHCIB) May 14, 2019
As huge a scandal as Tether and Bitfinex are combined up in, even the $850 million in losses compounded with alleged fraud are a drop within the bucket in comparison with the $1 trillion wiped from the inventory market Monday because of the ongoing U.S. China commerce battle.
Despite – or possible due to – the devastating losses to an equities market extremely uncovered to political malfeasance, bitcoin’s value continued to surge.
Adding to the bullish narrative, institutional demand for crypto seems to be rising. At the top of final month, Grayscale Bitcoin Investment Trust inflows stood at an all-time excessive. GBTC’s actions are a reliable indicator of institutional sentiment towards bitcoin.
Seeing Wall Street load up on bitcoin with all the same old suspects bodes very effectively for the crypto market. Seeing little institutional urge for food for bitcoin shorts does too.
Tether’s All Tangled Up in Bitfinex Scandal
What makes this rising institutional demand much more notable is that it comes at a time when Bitfinex – one of many oldest cryptocurrency exchanges – has grow to be embroiled in a significant scandal, and Tether’s all twisted up in it as effectively.
New York Attorney General Letitia James is investigating Bitfinex for allegedly dipping into the reserves of controversial stablecoin Tether to cowl up a lack of $850 million that had been compromised by Panamanian cost processor Crypto Capital Corp.
A lawyer for Tether Limited admitted on April 30th that every Tether coin is presently backed by solely $zero.74 in money, coupled with short-term securities. That was a bombshell revelation that confirmed critical fears about Bitfinex and Tether.
But international crypto markets had been unaffected. They really had a giant yawn to provide to the Tether scandal. It barely registered as a blip in bitcoin’s price close to the top of April, and everyone knows what occurred next.