Bitcoin (BTC) dropped from $5,500 to as low as $5,070 on Bitstamp Thursday afternoon due to news that Bitfinex and Tether (USDT) have been sued by the New York Attorney General’s Office in the Supreme Court of New York. Simultaneously, the rest of the crypto market turned bearish and the total crypto market cap dropped from $179 billion to as low as $167 billion.

Tether (USDT) initially dropped to $0.98 when the news broke, and other stablecoins like USD Coin (USDC) surged above $1. Tether (USDT) has since climbed back to $1 and USD Coin (USDC) is descending towards $1. It is certainly important to watch how the Supreme Court of New York responds to this lawsuit, but for now, stablecoins are heading back to parity and the crypto market has become relatively stable.

Bitcoin (BTC) has settled into a trading range between $5,100 and $5,200. Just after midnight, Bitcoin (BTC) reached as high as $5,190 before declining to $5,105 around 9 a.m. Eastern time. Bitcoin (BTC) slightly rebounded during the late morning and afternoon and is currently trading near $5,130. Following the Bitfinex/Tether (USDT) lawsuit, it appears that the new resistance level for Bitcoin (BTC) is $5,200 with support at $5,100. Another important resistance level is at $5,600, which is the level to watch to see if Bitcoin (BTC) can continue rallying towards $6,000.

So far, since the CME Bitcoin futures expiration, Bitcoin (BTC) is down although this appears to be due to the Bitfinex/Tether (USDT) lawsuit. It will take several more days of trading data before it can be confirmed if this is a month where CME traders have gone short, which would fuel bearish sentiment, or if CME traders have gone long, which would restart the Bitcoin (BTC) rally towards $6,000.

The most profitable cryptocurrency today is IOTA (MIOTA), which has gained 18% in the past 24 hours. This is due to news that car company Jaguar is teaming up with IOTA (MIOTA). Jaguar customers who enable automatic data reporting will earn IOTA (MIOTA) and can then use the IOTA (MIOTA) to pay for tolls, parking, and electric car charging, as well as Jaguar’s ride-sharing program. IOTA (MIOTA) is the number one directed acyclic graph (DAG) cryptocurrency and is optimal for the internet of things (IoT), which is why it was selected by Jaguar for this project.

IOTA’s (MIOTA) success today is in stark contrast to the rest of the crypto market. All major cryptocurrencies are in the red. Ethereum (ETH) is down 1.7%, Ripple (XRP) is down 0.9%, EOS is down 3.6%, Bitcoin Cash (BCH) is down 5%, Litecoin (LTC) is down 2.2%, Binance Coin (BNB) is down 4.5%, Stellar (XLM) is down 1.6%, Cardano (ADA) is down 4.1%, Tron (TRX) is down 2.7%, Monero (XMR) is down 0.8%, Dash (DASH) is down 1.2%, Bitcoin SV (BSV) is down 3.2%, Tezos (XTZ) is down 3.5%, and Dogecoin (DOGE) is down 2.8%.

It is possible that today’s bearish crypto market sentiment is continuing fallout from the Bitfinex/Tether (USDT) lawsuit since the news of this lawsuit has reached the mainstream media and is perhaps spooking investors.

The total crypto market cap has lost $2.5 billion today, dropping from $171 billion to $168.5 billion. That being said the total crypto market cap is still 68% above the bear market low of $100 billion, and the losses over the past week have only put a slight dent in the crypto market’s recovery.