Bitcoin Crash to $10K? JPMorgan Fuels Strong Tether Sell-Off Fears
JPMorgan’s analysts further raised concerns about the systemic impact of Tether’s actions on the cryptocurrency market. Tether is crucial in crypto liquidity, as its USDT stablecoin is widely used for trading and transactions.
A shift in its reserve allocation could not affect Bitcoin’s price and the broader crypto market stability.
Tether Counters JPMorgan
However, Tether was quick to counter JPMorgan’s claims, with CEO Paolo Ardoino accusing the analysts of being “salty” for not owning Bitcoin.
He emphasized Tether’s strong financial position, including over $20 billion in group equity, suggesting the company has enough liquidity to navigate any regulatory changes without resorting to drastic measures like selling Bitcoin.
While a lot still needs to be defined during consultations on the bills in coming weeks, even in the most extreme scenario, JPMorgan discounts the fact that Tether’s group equity (on top of stablecoin reserves) is over $20 billion in other very liquid assets and is generating…
— Paolo Ardoino 🤖🍐 (@paoloardoino) February 13, 2025
Bitcoin ‘Falling Wedge’ Patterns Sees $100K Target Next
Bitcoin is consolidating within a falling wedge pattern, a historically bullish formation that suggests a potential breakout in the coming days. The pattern, identified on the 4-hour BTC/USD chart, shows Bitcoin making lower highs and lower lows while converging toward a tightening range.
As of Feb. 14, the cryptocurrency was trading around $96,968, just below the 50-day EMA ($97,182) and the 200-day EMA ($98,889).
A breakout above the wedge’s upper boundary could trigger a strong upward move, with potential price targets at $101,385 and $106,811, as indicated by the measured move of the pattern.