Renowned investment analyst Cezary Graf has caused alarm amongst cryptocurrency enthusiasts all over the world after his Foreboding Bitcoin price prediction. On May 11, the Polish financial advisor was of the opinion that collapse of either of the cryptocurrency giants, Tether or Binance, could cause a catastrophic collapse of Bitcoin prices to levels not seen since 2010. According to Graf, a crash of such epic proportions would leave Bitcoin at just $2.7!

Tether certainly has the power to disrupt the cryptocurrency market. Currently holding close to $83 billion USDT in circulation, the stablecoin makes up around 7% of the total crypto market capitalization and is therefore, a major contributor to the market. In February, Tether declared that its reserves fully back the circulating supplies of USDT, even reaching an all-time high of $2.44 billion according to a assurance report. Additional reserves have been invested in U.S. Treasury bills.

Binance, the world’s largest crypto exchange, is almost akin to an overlord in the crypto space. The exchange is the ultimate authority holding near undisputed power, influencing the entirety of the crypto market. Binance has also put forth assurances that tokens listed on the exchange are fully backed, however they’re currently facing backlash from regulators in the United States as they refuse to provide information on the exchange. Nevertheless, Binance remains dominant, despite a perceived decline in trading volumes.

Predictions such as these should always be taken with a pinch of salt. People such as Roubini, Schiff and Graf often make outlandish claims when the crypto market is bearish, yet are silent when crypto markets are in their healthy ‘bull’ position. Although it is likely that Bitcoin prices may fall to around $24,000, experts don’t believe that this drop will be followed by a catastrophic crash to $2,700 as forcasted by Mr. Graf. At the time of writing, Bitcoin is trading up 1.3% at $27,195 in the Monday Asian trading session.



Other News from Today