Tether raises only $5 billion

[Ben Graham]

As Bitcoin regains its footing after yesterday's large sell?off, it emerged that Tether raised only $5 billion — well below earlier expectations of $15–20 billion. The company was valued at $500 billion. The revised figure represents a 75% decline from the upper bound of the original target and follows Tether's disclosure of roughly $10 billion in profit last year.

Clearly, many investors questioned why a company already generating more than $10 billion annually would need an additional $15–20 billion. The change in funding plans raises questions about Tether's strategy and investor sentiment toward the stablecoin industry in general. The original ambitions suggested confidence in further growth and expansion, but the adjusted raise may indicate a more cautious assessment of market risks and prospects — which is arguably worrying.

A $10 billion profit last year is a striking figure. Still, investors may have been restrained given the regulatory challenges facing Tether and the overall volatility of the crypto market. Growing competition in the stablecoin sector, with new entrants vying for market share, is another important factor.

The 75% down?revision of the fundraising target is a significant signal for the whole crypto industry. It may reflect more conservative risk assessments by institutional investors and heightened attention to regulation, transparency and project resilience. Nevertheless, Tether's position as the number?one stablecoin issuer gives it substantial weight in the digital?finance ecosystem, and the company's further development still looks promising.

Trading recommendations

Bitcoin

Buyers are currently targeting a return to $77,400, which would open a direct path to $80,100 and then to $83,100. The farther target is around $85,600; a break above that would signal attempts to restore the bull market. In case of a decline, buyers are expected at $74,600. A move back below that area could quickly push BTC toward $72,100. The far downside target is $68,900.

Ethereum

A clear hold above $2,301 opens a direct path to $2,466. The farther target is around $2,585; surpassing that would indicate strengthening bullish sentiment and renewed buyer interest. In case of a decline, buyers are expected at $2,159. A move back below that area could quickly push ETH toward $2,017. The far downside target is $1,891.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.

The material has been provided by InstaForex Company - www.instaforex.com