Fiat deposits are what actually started the cryptocurrency trend. It all began when everything was still measured in USD on the digital market. But today a lot of the times transactions are made in Bitcoin or Litecoin or any other cryptocurrency, sometimes confusing the traders. Bitfinex has identified the problem and has suspended all fiat deposits in order to make cryptocurrencies more effective in the circulation around the system. Bank transfers have also been stopped completely, because of the fact that the operations were in complete chaos, even though they denied it.
What’s next?
This latest suspension brings questions about the general future of the company and the industry itself. What will happen to all future deposits and what will they be like? Will Bitfinex be able to continue operating as it once could or will it fully cut off from the monetary system and start its dominance on the digital market? all of this questions need to be answered by Bitfinex itself or else it could be looking at a potential bankruptcy because of all the problems with these transfers.
It is known for a fact that Bitfinex has been banking with HSBC through numerous GTS (Global Trading Solutions). However, it is still unclear whether or not the crypto venue will be blocked by these companies and what other channels they have in order to face these challenges. These transmission delays are the top priority for every employee at Bitfinex at this point, because of the scale it may affect the market on a scale that nobody is expecting. Bitfinex had started assuring the customers that everything was under control and the situation would normalize within at least a week. But that week was going to be a hell of a ride for some investors as Bitcoin prices would surely react.
How is Bitcoin dealing with the news?
No matter what happened, Bitcoin was sure to react with its prices, some of the critics believed that the prices would go crazy and it would fall to the lowest it’s been this past year. But fortunately it managed to hold on to its number 1 place on the market and its relative price remained O.K. within the week.
What’s important to note here is that Bitcoin prices are one of the most responsive ones in the world. it is one of the most susceptible currencies regarding news and is sure to stay that way no matter who says what.