Graf predicted that Bitcoin prices would fall to $3 on May 11. This wild prediction was predicated on the influence of Tether and Binance on Bitcoin markets.
Graf has frequently offered his thoughts on many topics in business and economics with his 42,500 Twitter followers. He promotes a series of financial webinars and provides counseling services on his website.
A collapse of Tether, Binance, or both, according to the Polish financial counselor, may send Bitcoin prices tumbling to levels not seen in a decade:
“Without Tether and Binance, the current 27,000 USDT per BTC will turn into $2.7 per BTC,” he remarked (translated). Then cryptocurrency may become financially appealing once more. It is preferable to lose an opportunity than money. It’s better to wait.”
On May 13, he explained that the price forecast was for a drop to $2,700, not $3,000.
Tether wields enormous power in cryptocurrency markets, with about $83 billion USDT in circulation. This presently accounts for approximately 7% of the total crypto market capitalisation.
The corporation, on the other hand, just issued an assurance report confirming that the stablecoin is completely backed. Tether reported a gain in surplus reserves of $2.44 billion, an all-time high. It stated that the majority of its reserves are held in US Treasury Bills.
Binance is the world’s largest cryptocurrency exchange, hence its influence is significant. Binance has also informed its clients that the exchange’s tokens are fully backed by reserves. However, the firm is currently under the scrutiny of US officials, who are conducting a broad crackdown on all cryptocurrency exchanges.
Furthermore, while trade volumes have recently decreased, Binance remains dominant.
These apocalypse forecasts should be treated with a grain of salt in general. When crypto markets are negative, anti-crypto analysts such as Cezary Graf, Nouriel Roubini, and Peter Schiff frequently make outrageous statements. When the bull markets are in full swing, they are often quite quiet.
At the time of writing, bitcoin prices were up 1.3% for the day. As a result, the asset was changing hands for $27,195 during the Asian trading session on Monday morning.
Analysts expect that the market will correct further, with a drop to roughly $24,000. At this point, a catastrophic drop to $2,700 is quite implausible.