FX.co ★ Money continues to be withdrawn from the Tether stablecoin

While the bitcoin exchange rate is trying to find the ground under its feet, having demonstrated a sharp drop last Friday and recovering for two days in a row after that, investors continue to withdraw their money from the Tether stablecoin due to the risks of serious interference in the company's work by the regulator.

Let me remind you that last week and a week after the collapse of Terra UST, many investors began to get nervous, fearing that similar stories could repeat with other stablecoins. Against this background, Tether immediately lost about $ 7 billion in capitalization in a few days, demonstrating a slight decoupling from the 1:1 rate. This raised quite a lot of questions about the company's reserves underlying the world's largest stable coin. Even then, it was clear that Tether's turnover offer had fallen from about $ 84 billion a week ago to less than $ 76 billion, and the outflow continued to be observed.

At the moment, the capitalization of Tether has decreased even more. If on May 11 the company totaled $ 84 billion, then on Monday morning the offer was about $73 billion - minus 11 billion in a little less than two weeks. At the end of last Friday, regulators from various countries expressed concern about stablecoins after the collapse of UST, which at that time was the third-largest stablecoin in the world. As a result, over the past two weeks, investors have withdrawn more than $ 11 billion amid expectations of increased regulatory control over stablecoins. Only about $ 1 billion was withdrawn on Friday evening when investors' fears were intensified by the sharp drop in bitcoin and ether.

As noted above, the stablecoin, which should be pegged to the US dollar, temporarily fell to 95 cents on May 12 after the TerraUSD or UST crash occurred in the market. This led to the sale of the Luna token associated with UST, which in turn led to the loss of more than $ 40 billion in cash by Luna participants and holders.It is worth noting that every time a project collapses in the cryptocurrency market, investors always have fear for their funds since this market is not only highly profitable but also very speculative.

In defense of the stablecoin, it should be said that, unlike Tether, UST was not backed by a fiat currency held in reserve. Instead, it relied on some sophisticated computing technique in which price stability was maintained by destroying and creating UST and the related luna token. Many investors have thrown in UST with one goal in mind - the promise of a 20% return on savings from Anchor, Terra's flagship lending platform. Greed led to the collapse of the entire ecosystem and the blockchain itself.At the end of last week, Tether announced that it had reduced the number of commercial securities owned by it and increased its holdings of US Treasury bills. For the first time, a company based in the British Virgin Islands has declared that it is the holder of the US national debt. The company declined to comment on other sources of its funds but said it was constantly conducting a thorough audit of its reserves. The criticism of investors was based on the fact that the real funds stored in the reserves of the company itself amounted to about $ 4.2 billion, another part, $ 34.5 billion, consisted of treasury bills with a maturity of fewer than three months, and $ 24.2 billion were invested in commercial securities at all. Tether has repeatedly faced calls from investors to conduct a full audit of its reserves. In July 2021, the company announced that it would hold it in the coming months, but it has not yet done so.

The technical picture of Bitcoin

It is too early to say that buyers are actively returning to the market, rather the opposite - profit-taking and speculative traders helped to support the course after Friday's sale, but the larger players continue to wait. To develop the initiative on the part of the bulls, active actions are needed in the area of $ 31,800, but before that, you need to try to return above the price of $ 30,700, which has been tested quite a lot in the last few weeks, but it has not been possible to get beyond it. Only fixing above these two ranges will quickly bring the trading instrument back to $ 33,030, allowing investors to calm their nerves a little. A breakdown of the $ 29,600 level and the absence of buyers will send the trading instrument back to a minimum of $ 28,600, and there it will be close to $ 27,670, which will turn the market upside down again and cause panic on the part of many investors.

As for the technical picture of the ether

The focus has shifted again to the rather important resistance of $ 2,140, above which it has never been possible to get out after the collapse of the ether in early May of this year. It will be possible to talk about building an upward trend only after a breakout of $ 2,140, which will quickly return the ether to $ 2,295, and there is $ 2,430 very close, which will be a serious problem for traders. Only consolidation above will allow building an upward trend for the trading instrument with the prospect of updating the highs in the areas of $ 2,630 and $ 2,760. In case of a return of pressure on ETH, purchases in the area of the nearest support of $ 2,020 are not excluded. A break in this range will be the reason for a hike to $1,890, and there it is very close to $ 1,805, where the major players will again begin to actively act.