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S&P Global Ratings says Tether’s stability is ‘weak’

S&P Global Ratings says Tether’s stability is ‘weak’

The post S&P Global Ratings says Tether’s stability is ‘weak’ appeared on BitcoinEthereumNews.com. Standards and Poor’s (S&P) Global Ratings has lowered Tether’s Stablecoin Stability Assessment to its lowest level, “weak,” or numerically “5.” This report, which is meant to assess the ability of tether (USDT) to maintain its peg, cites a variety of potential problems with its reserves, including its exposure to high-risk assets. These high-risk assets “include bitcoin (BTC), gold, secured loans, corporate bonds, and other investments, all with limited disclosures and subject to credit, market, interest-rate, and foreign-exchange risks.” Read more: Tether claims billions in profits as it grows ‘secured loans’ Specifically, the report also highlights that Tether’s reserves are, in theory, exposed to a collapse in the price of BTC, stating, “BTC now represents about 5.6% of USDT in circulation, exceeding the 3.9% overcollateralization margin, indicating the reserve can no longer fully absorb a decline in its value. “A drop in BTC’s value combined with a decline in value of other high-risk assets could therefore reduce coverage by reserves and lead to USDT being undercollateralized.” Additionally, the report points out that Tether provides very few details about its counterparties, making full assessments of their creditworthiness or risk more difficult. S&P Global Ratings also highlights that Tether’s increasing web of investments is supposedly kept separate from the core reserve, but it additionally highlights that “there is limited public disclosure on group-level governance, internal controls, and the segregation of activities.” Asset Rating USDT Weak-5 USDC Strong-2 FDUSD Constrained-4 TUSD Weak-5 FRAX Weak-5 EURC Strong-2 USDe Weak-5 USDS Constrained-4 USDP Strong-2 S&P Global Ratings Stablecoin Stability Assessment scores for various stablecoins. This rating puts Tether in the same category as TrueUSD, which has lost access to nearly all of its reserves. Tether’s largest competitor, USDC issued by Circle, has a rating of “Strong.” Despite some of these potential problems in the Tether reserves,…
Bitcoin Cash Rockets 8% as Crypto Market Eyes Rebound

Bitcoin Cash Rockets 8% as Crypto Market Eyes Rebound

The post Bitcoin Cash Rockets 8% as Crypto Market Eyes Rebound appeared on BitcoinEthereumNews.com. Bitcoin Cash (BCH) is bullish and outperforming the flagship cryptocurrency asset, Bitcoin (BTC), in the last 24 hours. According to CoinMarketCap data, Bitcoin Cash has climbed by a significant 8% in price to outshine BTC. BCH outperforms Bitcoin across key metrics Notably, Bitcoin Cash witnessed a technical breakout and has managed to stay above the $520 resistance level.  The asset is supported by several bullish indicators, including a Relative Strength Index (RSI) of 52.62, which is trending upwards. Traders are interpreting this as a signal of a sustained rebound from its previous slip-up. The positive outlook for BCH comes amid an anticipated broader market reversal. The general market is down slightly by 0.73%, but there are indications that a recovery is underway.  Bitcoin Cash investors remain optimistic that if the broader market recovers, it could catalyze to push the asset back toward the $555 resistance level. A breach of this resistance could see Bitcoin Cash targeting $600 in the long term. However, if it fails to sustain the momentum, it could slip below the $500 support.  As of press time, Bitcoin Cash was changing hands at $531.13, which represents a 1.89% increase in the last 24 hours. The potential to climb higher exists as the coin previously hit a peak of $536.42 before experiencing volatility. It faces low trading volume challenges, however, as this metric is down 26.01% to $313.02 million. You Might Also Like Despite this performance, Bitcoin Cash is outperforming Bitcoin on multiple time frames, including 18% year-to-date growth.  Bitcoin is trading down by 0.97% at $86,635.96 within the same time frame. Its volume is also in the red zone as market participants exercise caution. Bitcoin Cash on bullish run Bitcoin Cash has been showing signs of a bullish rally, with the coin closing in on Cardano (ADA).  It threatens to edge…
Donald Trump’s Son Eric Trump Makes Statement on Ethereum (ETH)! This Time It’s Different!

Donald Trump’s Son Eric Trump Makes Statement on Ethereum (ETH)! This Time It’s Different!

The post Donald Trump’s Son Eric Trump Makes Statement on Ethereum (ETH)! This Time It’s Different! appeared on BitcoinEthereumNews.com. While US President Donald Trump continues to attract attention with his pro-Bitcoin and cryptocurrency moves, his sons are following the same path. At this point, while Trump and his sons have come to the fore with their pro-cryptocurrency stance, Trump’s second son and director of Bitcoin (BTC) mining company American Bitcoin, Eric Trump, has come to the fore again with Ethereum (ETH). Eric Trump denied reports that he predicted ETH would reach $8,000. Eric Trump, son of US President Donald Trump, denied a false report regarding an ETH price prediction. Eric Trump denied reports circulating on social media X that he predicted Ethereum would rise to $8,000 within 38 days. In his response, Eric Trump urged the account in question to stop spreading such fake news nonsense. He added that he wanted ETH to reach this price, but did not make such a statement. “Stop spreading this fake news. Of course I would love for that to happen, but I never said that.” Eric Trump, who has come to the fore with his open support for Ethereum, had previously stated that ETH was significantly undervalued. Additionally, Eric Trump stated in his previous statements that he invested in altcoins named Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and Sui (SUI). https://x.com/EricTrump/status/1993366238610006227 *This is not investment advice. Follow our Telegram and Twitter account now for exclusive news, analytics and on-chain data! Source: https://en.bitcoinsistemi.com/donald-trumps-son-eric-trump-makes-statement-on-ethereum-eth-this-time-its-different/
BTC Faces Tight Recovery Window as Key Fibonacci Levels Limit Upside

BTC Faces Tight Recovery Window as Key Fibonacci Levels Limit Upside

The post BTC Faces Tight Recovery Window as Key Fibonacci Levels Limit Upside appeared on BitcoinEthereumNews.com. Bitcoin holds fragile support as sellers cap every attempt to break short-term trends. Futures interest stays strong, showing steady trader conviction despite spot outflows. Texas’ Bitcoin reserve move adds fresh institutional weight during key market tension. Bitcoin continued to struggle for direction as traders assessed a weakening technical structure and a significant policy shift from Texas. The asset faced tight intraday ranges after several weeks of sharp pullbacks. However, broader participation from futures markets and a new state-level allocation added fresh attention. The mixed environment created a complex setup for the days ahead. Key Levels Define Bitcoin’s Short-Term Path Bitcoin traded inside a firm downtrend on the 4-hour chart. Sellers kept pressure at short-term EMAs and Supertrend levels. The market attempted to form a floor near $86,700. This zone created temporary support as volatility cooled. Besides, the recent reaction from $80,728 marked a key turning point. Price recovered from this Fib anchor and attempted to build momentum. However, bullish attempts stalled near $91,492. This level aligned with the 0.236 Fibonacci zone and acted as a firm supply area. BTC Price Dynamics (Source: TradingView) Consequently, the next resistance emerged at $98,151. Sellers dominated this level during previous recoveries. A push through $103,534 would signal a stronger shift in sentiment. Moreover, a break above $108,916 remains important because this zone often triggers broader trend changes. Related: XRP Price Prediction: XRP Attempts Reversal as Key Levels Tighten and Flows Stay Negative On the downside, losing support near $86,700 exposes $83,000. Any deeper decline could retest the $80,728 low. Futures Data Shows Confident Participation Source: Coinglass Bitcoin futures open interest stayed firm throughout the year. Traders increased exposure as price recovered from early seasonal weakness. Open interest climbed toward $60 billion and held near $59.23 billion on November 26. Additionally, the alignment between rising…
We can cover our debt even if Bitcoin falls to $25k, says Strategy

We can cover our debt even if Bitcoin falls to $25k, says Strategy

The post We can cover our debt even if Bitcoin falls to $25k, says Strategy appeared on BitcoinEthereumNews.com. Journalist Posted: November 26, 2025 Key Takeaways  Can Strategy cover its debt?  Yes. According to the firm, it had a 5.9x assets-to-debt ratio if BTC slips to $74k or 2x cover if it crashes to $25k.  How did the community react to the assurance?  Investors remain skeptical as the MSCI delisting review looms over MSTR’s mid-term outlook.  Michael Saylor’s Strategy (Nasdaq: MSTR) is in a war mode. It has been fending off double pressure from the MSCI index exclusion threat and FUD linked to its debt obligations if the Bitcoin price drops lower.  On the latter, the firm assured that it has sufficient assets to cover its debt obligations, even if BTC drops to its cost basis of $74k or crashes further.  “If $BTC drops to our $74K average cost basis, we still have 5.9x assets to convertible debt, which we refer to as the BTC Rating of our debt. At $25K BTC, it would be 2.0x.” Source: Strategy Strategy funds its BTC buys through capital raised either via debt or the sale of its main MSTR stock and other preferred stocks (they have different obligations).  For convertible debt, Strategy owes $8.2 billion, with the first maturity in September 2028.  If adjusted for obligations tied to preferred stocks, the total debt was $15.9 billion. Compared to its total assets, Strategy reported 3.6x assets to cover its liabilities if BTC slips to $74k.  Market reactions to Strategy’s debt update However, the Strategy’s assurance was met with skepticism. One critic claimed that the firm’s crisis will be crypto’s tragedy. Another analyst, Ritesh, said that the firm was already preparing for a ‘bear market strategy.’ In fact, another user, Nebraskan Gooner, quipped,  “Funny, they have to explain to everyone how over-leveraged they are in.” Perhaps one of the caveats of BTC dropping below…