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Michael van de Poppe, crypto trader and analyst, has published a tweet to explain what is happening to the Bitcoin price at the moment, what correction the market has been facing and what is likely to come next.
The correction is taking place due to an important factor, according to Poppe, which is the USDT FUD that has been flooding the crypto market now.
Many on the X social media network this week have been speculating on Tether’s USDT topic, assuming as of Dec. 30 that this popular stablecoin will be banned in Europe and delisted from all local cryptocurrency exchanges.
Tether FUD and fear of future USDT delisting in Europe
This December the European Union authorities implemented Markets in Crypto-Assets Regulation (MiCA), as of Dec. 30. That regulation requires strong compliance requirements for crypto assets in Europe. Many believe that USDT may fail to meet those strict requirements and therefore be banned from use within the EU.
Therefore, many are spreading negative speculations (which crypto fans prefer to refer to as FUD, standing for “fear, uncertainty, doubt”) that USDT may be delisted from exchanges in Europe. Many cryptocurrency influencers are refuting those speculations; among them is JAN3 boss and Bitcoin maximalist Samson Mow.
Tether CEO Paolo Ardoino addressed the FUD on his X account, assuring the community that USDT will not be deemed illegal in the European Union.
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Here’s what’s coming next for Bitcoin price per Poppe
Above-mentioned analyst Michael van de Poppe tweeted that despite the current correction largely fueled by this FUD, and even with high chances of Bitcoin dropping deeper, “the rotation back up might have already started.”
At the time of this writing, Bitcoin is changing hands at $94,630 after recovering 2.58% over the past 24 hours, rising from the $92,300 trading zone.
However, Bitcoin first plunged below the $100,000 level even before the Tether FUD began, after the statement made by Fed Reserve chairman Jerome Powell, who said that next year, the U.S. central bank intends to shrink its dovish activity rather than expand it. This year, the Bitcoin rally was fueled by the Fed’s several rate cuts, which added a flow of liquidity to the market, allowing the world’s largest cryptocurrency to surge first above $100,000 and then on above $108,000.