They say bad things usually come in threes. With Bitcoin, this is no different, with one string of bad news following the other. But why hasn’t all the recent bad news been dragging Bitcoin down?
Firstly, research was released showing that bots are now able to front run users on decentralised exchanges. Soon followed more Tether and Bitfinex worries, this time involving the New York Attorney General. And then, to top it off, Binance announced the news that it had been hacked to the tune of 7,000 Bitcoin, equivalent to $40 million.
With each piece of bad news, one would expect worry to grip the cryptocurrency market. Both the Bitfinex news and the Binance hack were two major jolts to the system. The Binance hack even came with rumours of a re-org of the Bitcoin blockchain, although this bad idea was quickly rejected.
But the Bitcoin price has remained strong and even grown. Surely this points to positive bullish signs in the market if Bitcoin can react to such news with price positivity?
The way the market has evolved over the past few years is certainly interesting. Whereas before episodes such as the Binance hack might have been devastating for cryptocurrencies, nowadays they seem to be brushed off without a care in the world.
If Bitcoin can maintain its positive price momentum, then the bulls will certainly be back in town. However, before we all get too excited, a lot of what happens next may rest on the outcome of the Bitfinex/Tether issue that is still ongoing.
Should Tether fail, its exposure to so many exchanges could be devastating – even more so than the initial MT Gox disaster. Despite this, people seem comfortable with the price rising after over a year of the bear market.
The last bull run also began with numerous pieces of bad news that Bitcoin shrugged off, so perhaps history is repeating itself?