Bitcoin analysts say this week's quick market rebound might be due to Chinese retail buyers buying the dip, using the stablecoin tether.
NYAG wrapped its investigation into Tether's internal finances, with the stablecoin issuer admitting no wrongdoing.
There are signs some of the excessive leverage had been wrung out of the market, implying the potential for a fresh more to the upside, analysts said.
Even after a price plunge of more than $10,000 over the past couple days, analysts see further selling ahead.
The settlement appears to remove what might have been a systemic threat to cryptocurrency markets.
"If any issues arise that could affect the willingness or ability of both domestic and foreign investors to use USDT, the most likely result would be a severe liquidity shock to the broader cryptocurrency market," the report says.
