Tether invested 75% of its reserves in high-risk assets such as commercial papers, government bonds, and commodities. If there were cuts in investments in USDT, this would lead to the sale of other cryptocurrencies.

Caitlin Long is the founder and CEO of American Bitcoin bank Avanti Financial Group. She said that the current situation of stablecoins could be directly related to the fall in Bitcoin’s price.

The businesswoman talked about a recent report from Tether (USDT) on how it manages its users’ reserves. She stated that it could have led to a massive sale of cryptocurrencies since May 12^th. No one knows yet the data but Long considers that it caused “a negative surprise”. According to her, it details that Tether invests 75% of its reserves in commercial papers and other high-risk assets.

She believes that investment advisers to cryptocurrency funds will advise cuts in Tether to reduce risk exposure. If investors’ portfolios had a 5% or 10% cut in USDT, this would lead them to sell other cryptocurrencies to reduce the overall risk.

Furthermore, Long said that credit risk rose the probability of default and the severity of losses. That suggests a higher risk that Tether is worth less than USD 1, amid a market correction. This would take the cryptocurrency markets even lower, as already happened on several DeFi platforms that made cuts in USDT.

This is not the first time that Tether and the management of the reserves that support the cryptocurrency receive questioning. Members of the community even reiterated it at the beginning of April after a new report from the company. However, it is public knowledge that they invest these reserves in high-risk assets such as commercial papers, government bonds, and commodities. This situation leads the businesswoman to say that the “new questions” that may arise will need new answers.

Long highlighted that this decision was deliberate as Tether now has access to stock markets. In contrast, there were “partial explanations” for these issues on previous occasions. “Why take so many risks with users’ reserves? Why add more controversy?” she questioned.

Caitlin Long Predicts the Future of Stablecoins

On her Twitter account, Caitlin Long continued to express her opinion on Tether’s behavior. She said that this could lead cryptocurrencies to remain tied to corrections of the market or, even worse, the crash of stablecoins.

According to the businesswoman, it would be completely possible to avoid the latter. She also stressed that it is necessary to take care of users’ money.

Long made it clear that she will continue to defend Tether as an important technology and a bridge with the US dollar. The businesswoman has expressed her support for the commercial regulation on cryptocurrencies, which confirms it.

However, she said that she cannot defend Tether’s choices about its investments. She also disagrees with the fact that they have not disclosed data on the risks that they have taken. She considers that it is a wasted opportunity and something negative for the cryptocurrency industry.

By Alexander Salazar

The history of the falls in Bitcoin’s price reveals key points that are bullish, according to Willy Woo. During the bullish run in 2017, there were big corrections that resulted in opportunities to buy cheaply.

In recent days, Elon Musk announced that he stopped accepting payments with Bitcoin, leading to panic and hysteria in that market. The price of the crypto asset has fallen by more than 20% but some analysts find positive readings in tracking and research data.

In a tweet, renowned analyst Willy Woo shows that Bitcoin’s bullish run is not over. A graph indicates a divergence between the price of BTC and the total value sent over the network. Woo himself developed this indicator, known as the Bitcoin NVT (network value per transactions) Ratio.

It is possible to find some coincidences in the history of the falls in Bitcoin’s price, according to the analyst. In the last eight years, the market has fallen below the NVT ratio several times.

Bitcoin’s market capitalization exceeds its transaction volume when the relationship between price and transaction rate is high. This unjustifiably inflated price would represent a bearish trend.

However, Woo’s graph currently shows a low NVT rate. In other words, the transferred value does not compare with the increase in the use of the network. The analyst notes that a price increase follows it in most cases.

Holders Contain the Fear that Spreads on the Bitcoin Network

This is not the best moment for Investor sentiment towards Bitcoin. According to the Fear and Greed index for Bitcoin, a point of “extreme fear” is making it fall to the levels of the 2020 crisis. At that time, the start of the COVID-19 pandemic unleashed it.

Investor Raoul Pal considers that this is not a time to worry. He shared a tweet with positive data that he extracted from a Bitcoin blockchain in full decline. He predicts that the market value of the pioneering cryptocurrency will rebound in the short term.

Pal says that Bitcoin’s price is undergoing a “perfectly normal and healthy” correction, so he believes that it is time to buy or hold. His chart shows a falling wedge and indicates that the price of Bitcoin will exceed USD 60,000.

The Drop in the Price Is an Opportunity to Buy Cheaply

Analyst William Clemente agrees with Pal that the price of Bitcoin has already reached the bottom and will now start recovering. He states that users are just perceiving that there is an opportunity to buy cheaply. This would be the third time in the last three months of the current bullish run.

It seems that users tend to miss the few buying opportunities that emerge in a bullish rally. This is not different from what has happened in the past. In 2017, the prices of Bitcoin dropped three times showing opportunities to buy cheaply.

Blackrock’s Chief Investment Officer (CIO) Rick Rieder classified Bitcoin as an “asset of interest”. He says that it plays a role in investment portfolios that people still do not understand completely. He believes that the pioneering cryptocurrency will mature, overcome challenges, and “become part of the investment field.”

By Alexander Salazar

The cryptocurrency meme started as a mere technological curiosity, but Elon Musk pushed its price up with his comments in its favor. At least 23% of Americans surveyed expect Dogecoin to reach a price of USD 1 in 2021.

The cryptocurrency meme Dogecoin (DOGE) has advanced in the markets becoming a true sign of identity of this time. Speculative investments have become part of everyday life, just like GameStop on the stock market. Yet despite its design as a joke cryptocurrency, many Americans believe that DOGE is the future of the world economy.

Dogecoin Grew Rapidly But Lost More than a Third of Its Value

The price of DOGE has had a very rapid and unexpected growth for some months. A strong community of users used it as a means of tipping creators on the Internet. At first, the cryptocurrency was nothing but a mere technological curiosity amid a much larger crypto world.

The increase in the availability of financial resources thanks to the US stimulus plans helped change this situation. They injected the world economy with US dollars, which went into the financial market. Another relevant factor was the influence of Elon Musk, who pushed its price up with his comments in favor of the cryptocurrency meme.

The price of Dogecoin went from around USD 0.01 on January 1^st to its most recent all-time high of USD 0.66. That was due to a speculative bullish rally as there is no technology project to support its value. For that reason, Dogecoin is vulnerable to drops like the one it suffered in recent days. Elon Musk’s participation in the Saturday Night Live show caused it to lose more than a third of its value.

Americans Still Trust Dogecoin and Believe that It Will Be the Bitcoin of the Future

Despite everything that happened to Dogecoin, Americans still trust Dogecoin, according to a recent survey from the Gamblerspick.com website. A total of 1,001 US citizens participated in the consultation, answering questions related to Dogecoin. According to their responses, at least 23% of the participants continue to trust Dogecoin and expect it to reach a price of USD 1 this year.

According to the study, 27.6% of those surveyed had invested money in Dogecoin while 30% believe that this is the Bitcoin of the future. Regarding Elon Musk’s role in the market, 43.6% approve of his participation in promoting Dogecoin, 15.2% do not approve of it, and 41.1% are neither in favor nor against the actions of the entrepreneur.

Not all are signs of support for Dogecoin as 40% of those surveyed regret having invested in the meme cryptocurrency. About 48.8% regret having invested in stocks powered by Reddit like GameStop. Finally, one in four Americans surveyed stated that they view Dogecoin as the future of the global economy. About 46.4% of the respondents admitted investing in the cryptocurrency for fun while 53.6% did it “to get rich”.

By Willmen Blanco

Only 0.034% of the population of Argentina has jobs in FinTech companies. Bitcoin companies outnumber cybersecurity, investment, and insurtech ones.

The Bitcoin and blockchain industry in Argentina currently has 9% of FinTech companies. A recent study that the Argentine Chamber of FinTech (CAF) sponsored shows this.

Local exchanges and software companies related to Bitcoin, blockchains, and other cryptocurrencies fall under the classification of “blockchain and crypto”, according to the report.

Within the Argentine FinTech sector, the largest industry is that of digital payments (27%). It precedes the credit sector (22%), technology providers (12%), and business-to-business transaction services (11%).

Investments (7%), financing (5%), and insurtech (5%) are behind the cryptocurrency and blockchain industry. Finally, it is possible to find companies specialized in computer security (2%).

The report entitled “Evolution of FinTech Employment 2021”, published recently, had the participation of 62 FinTech companies. According to CAF, they represent 80% of the labor supply in the sector.

Only 0.034% of Jobs in Argentina are in FinTech Companies

“Evolution of Fintech Employment 2021” provides other data related to financial technology industries in Argentina. According to the study, this sector employs almost 15 thousand people out of an estimated population of 45 million people. For that reason, this number only represents 0.034% of the population in the country.

Of those 15 thousand people, 60% are men and 40% are women, most of whom live in Buenos Aires, Córdoba, Santa Fe, and Mendoza. This data is not surprising since these areas are the largest urban conglomerates in the country.

In Argentina, information technology (IT) and digital product professionals have 52% of the jobs in Fintech companies. These precede the areas of customer service (10%), business development (9%), administration (9%), communication (6%), human resources (3%), and legal practice (2%). Other categories with a lower proportion occupy the remaining 9%.

The report also indicates that the jobs with the highest demand in the sector are those for backend, full stack, and frontend developers. The most in-demand also include, to a lesser extent, information scientists, and language-specific developers (such as Java Script, Python, Node JS, and Ruby).

The FinTech Sector Expects to Incorporate 5,863 New Jobs in 2021

The FinTech sector estimates that it will incorporate 5,863 new jobs in 2021, which represents an increase of 40% compared to 2020. The president of the Argentine Chamber of Fintech, Ignacio Plaza, said that the low rate of employment in the sector FinTech could change in the short term.

The most recent official report on university statistics in Argentina, published in 2018, confirms this statement. Around 20.8% of newly enrolled university students decided to receive training in applied sciences, which includes new technologies.

Plaza argues that FinTech companies have maintained a “sustained direct employment growth of 40% year-on-year since 2017.” The president of CAF highlights that 20% of the 302 FinTech companies in Argentina emerged “amid a pandemic.”

The manager explains that “the regulatory, tax and labor systems [of Argentina] must be compatible with those of the rest of the world.” For this reason, CAF claims “its collaboration to expand the FinTech ecosystem, develop and support the training of young people, and help companies grow.”

By Alexander Salaza