Bitfinex’s Temporary Deposit Update, Tether’s FUD Caused BTC to Break $7000

Bitfinex, on October 11, 2018 temporarily paused fiat deposits and on October 15,2018 in a blog post clarifying the reason and is expected to be back online on October 16,2018.

Bitfinex

Bitfinex in a medium article also stated, that all crypto-fiat withdrawals have been processing and so are the fiat withdrawals. Fiat deposits (USD, GBP, JPY, and EUR) on the other hand have been paused for certain user groups. Bitfinex summarised saying, 

We are working to implement a new and increasingly robust fiat deposit system to be available in the next 24 hours, by Tuesday, October 16, 2018, to allow for the efficient processing of Fiat deposits. Until then, we apologize for the inconvenience of the situation.

The exchange in recent days has come under the investigating eyes for its wide use of stable coin Tether. This is due to the fact that there haven’t been any transparent audits to prove if USD actually backs the tether.

Bitfinex has been facing a lot of speculation not just for the use of a tether, but also for dumping thousands of BTC rapidly. This has caused users to speculate if the exchange is going bankrupt. But Bitfinex responded loud and strong to the rumors on its blog. Alternatively, Bitfinex responds to insolvency rumors.

FUDS Everywhere

Ever since the announcement of Bitfinex and Tether’s possible exit triggered the price of BTC. It has rapidly spiked taking it from $6300 to $7000 temporarily.

Bitcoin price on Bitfinex

Rumor of Binance delisting Tether is another example of FUD that may have added to the FUD.

What do you think? Did you ride this FUD and get some profits? Let’s discuss!

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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