Will Bitcoin Crash Further? Report Suggests 80 Percent Drop on the Cards

Will Bitcoin Crash Further? Report Suggests 80 Percent Drop on the Cards

worrying analysis suggests Bitcoin’s crashing price could fall lower. Tether, a crypto-token tied to the value of a U.S. dollar, is revealed in a new report as having a strong relationship to the price of bitcoin. What’s worse, the current slide in the value of bitcoin seems tied to news around the controversial token.

“If there is questionable activity, the author believes a 30-80 percent reduction in BTC price could be forecast,” the report claims in its analysis. The report, released January 24, was written under a pseudonymous hash as the author was concerned about public response. If accurate, though, it would spell bad news for Bitcoin, which has already slumped to less than half its December high value to reach $7,183.

The analysis looks at Tether, which launched in 2015. Unlike cryptocurrencies that fluctuate in price, these are tokens backed by real currency held in reserve such that one token is always worth one U.S. dollar. It brings the benefits of the blockchain ledger and secure transactions to fiat currency, avoiding the spikes and falls from the regular markets. As there are 2.2 billion tether tokens out there, it’s assumed there is $2.2 billion tucked away in Tether’s stores