Friday , August 19 2022

Bitcoin [BTC]: Bitfinex IEO ticket supply will negatively affect King Coin in the short term, Lee Fundstrat


Time and again, Bitcoin is a great ascent [BTC] have had speculators in the industry cheating the next box for the king's coin. The recent $ 5,800 cryptocurrency price together with the recent Bitfinex announcement has led to that.

Bitfinex, the controversial cryptocurrency exchange, announced on 4 May, the launch of an initial exchange proposal [IEO] to recover money for the undisclosed loss of $ 850 million. The exchange will place their LEO tickets and look forward to selling $ 1 billion tickets.

With significant anticipated sales planned, some analysts suggest that LEO could have a detrimental effect on Bitcoin, albeit on a temporary basis. Thomas Lee, head of Global Fundstray's advisors research, is of this view and questions the market's ability to “absorb” these new tickets.

Lee, in tweeting in May 4, noted that the new “ticket ticket” from LEO Bitfinex will have a short-term adverse effect on Bitcoin as well as other Silver cryptocur. The above comment was made in the sense of a crypto-to-crypto transaction, resulting in a number of Silver cryptocur being exchanged for a deemed endowment ticket, in LEO, with no long-term aspirations.

He read his tweet,

“IEO $ 1 billion is a lot of“ new ”ticket sales and it's probably having a short-term negative impact on $ BTC #bitcoin and another chrypto as the market absorbs the supply t this…

… Unless all IEO buyers become new to crypto (fiat to crypto), it makes less sense. ”

The market cap will see a short thickness to the melody of $ 1 billion, if only transactions will be cryptocur Silver. Lee added that if this new “supply” is driven by “new customers,” referring to a fiat for crypto and not nascent investors, the supply shock would not show up.

Although, he claimed that the last scenario was unlikely and made "less sense."

On the subject of mining, Lee was of the view that the expected $ 1 billion of LEO Bitfinex ticket would equate to a significant sales by the miners. He added,

“Miners are selling $ 7mm a day so IEO $ 1 billion is worth 142 days from miners' sales in a day.” T

Despite the Bitfinex ticket sales and their prospects for the money recovered, Lee continues to be SEX in the long term. Fundstrat Executive recently noted Bitcoin support and the larger market during the Bitfinex-Tether fishery indicated that the crypto winter had overtaken, adding that if a similar scenario occurred between mid and late 2018, the market would run out of “Panic liquidation.

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