The cryptocurrency market is too large and too diverse at this point to have bitfinex or any single exchange have that big of an effect on the overall Market. If bitfinex fails and for that matter tether then they just fail and everyone who invested in them with all of these warning signs will lose a lot of their money. Keep in mind there are other exchanges and when mt.gox failed it was because they were the only real major exchange in a very small cryptocurrency market and that's why the effect was so profound. In today's well-capitalized bitcoin' and altcoin Market even China trying to completely delegitimize and kill off Bitcoin in the entire country is not enough to stop Bitcoin. The overall value of most coins since the Chinese regulations has fallen about 40% and only 40%! They have since stabilized. So since China can shut down every single Exchange in China and almost completely halt Bitcoin facility in their country and the cryptocurrency market is still standing and has stabilized what makes you think a single exchange with well-known problems that people should have left a long time ago can have any real effect on bitcoin's price?
RE: How bad will Bitfinex's demise, and inevitable crash of the Tether affect the overall cryptocurrency market?