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USDT Holding $1 Peg as Stablecoin Demand Builds:Current Price: 0.99984 (Analysis was generated on Monday Morning) Direction: LONG Confidence level: 42%(Professional trader snippets highlight strong stablecoin demand, liquidity role, and confidence tied to upcoming reserve audits, though explicit trading levels are absent and social data volume is low.) Targets Target 1: 1.00080 Target 2: 1.00150 Stop Levels Stop 1: 0.99890 Stop 2: 0.99800 Key Insights: Here's what's driving this setup. Several professional traders are emphasizing that stablecoins are acting as “dry powder” for the crypto market. With roughly $316B sitting in stablecoins across the ecosystem, USDT remains the dominant liquidity vehicle. When macro uncertainty rises—geopolitics, inflation fears, delayed rate cuts—capital tends to rotate into stablecoins temporarily. That flow supports USDT demand and keeps the peg firm. Another factor catching attention is the upcoming full reserve audit. Multiple traders highlighted that Tether shifting reserves heavily toward U.S. Treasury bills and pursuing a Big Four audit could significantly boost institutional trust. If the audit confirms transparency and full backing, it reinforces the stability narrative around USDT and strengthens demand across exchanges and DeFi platforms. The real story here is confidence. Stablecoins don't move like typical assets, but flows into USDT often signal traders preparing for future market deployment. When traders park capital in USDT, it usually means they’re waiting for opportunities rather than exiting crypto completely. Recent Performance: Price action has stayed extremely tight around the $1 peg, currently sitting at $0.99984. Throughout the last several sessions USDT has oscillated within a very narrow band around parity, showing the typical arbitrage-driven stabilization you’d expect from a large stablecoin. Volume across exchanges remains massive—tens of billions daily—which helps keep the peg stable even when large transfers occur. Expert Analysis: Professional traders are mainly focused on structural factors rather than technical indicators here. Several traders pointed out that macro risk environments tend to push capital into stablecoins first before it rotates back into Bitcoin and altcoins. That dynamic effectively strengthens the demand base for USDT in uncertain markets. Multiple traders also highlighted the potential impact of the upcoming reserve audit. If institutional investors gain stronger assurance that USDT reserves are fully transparent and Treasury-backed, confidence in the peg could improve further. That doesn't mean a big price rally—stablecoins aren't designed for that—but it does reduce downside risk from de‑pegging events. News Impact: Recent reporting about Tether’s reserve transparency and the planned independent audit is important. Traders see this as a credibility milestone for the entire stablecoin sector. At the same time, global macro uncertainty—especially geopolitical tensions and delayed rate cut expectations—continues to increase demand for dollar-denominated liquidity inside crypto markets. Both factors support stability and demand for USDT. Trading Recommendation: Putting it all together, I'm leaning LONG on USDT for this week’s stability trade. This isn’t about catching a big move—it’s about positioning around the peg holding firm while demand for stablecoin liquidity remains elevated. The professional traders I'm tracking consistently frame USDT as the core liquidity layer of crypto markets, especially during uncertain macro periods. A practical approach is accumulating near the peg with tight downside protection. Entry around current levels offers a small but measurable range toward $1.0008–$1.0015 while keeping risk controlled below $0.9989. The setup isn't explosive, but in the stablecoin world, consistency and liquidity are the real edge.
BITSTAMP:USDTUSDLong
by CrowdWisdomTrading
1
USDT holding the peg as traders lean defensive this week:Current Price: 0.99978 (Analysis was generated on Monday Morning) Direction: LONG Confidence level: 62%(Professional traders emphasize USDT’s expanding utility and defensive rotation flows, supporting a small upside bias despite low volatility.) Targets Target 1: 1.00050 Target 2: 1.00150 Stop Levels Stop 1: 0.99900 Stop 2: 0.99800 Key Insights: Here’s what’s driving this trade. Several professional traders consistently frame USDT as the preferred base layer for risk management, not just a placeholder. Across multiple discussions, traders highlight USDT’s expanding role in futures, leveraged products, and even macro-style trading instruments. That kind of structural demand matters, especially in weeks where traders want flexibility. What really stands out is adoption momentum. Multiple traders point to platforms rolling out broader USDT-based trading—forex, indices, and commodities settled directly in USDT. That’s not about price speculation; it’s about flow. More flow usually tightens the peg rather than stresses it, which favors a small upside drift back toward or slightly above $1.00 when demand spikes. Recent Performance: You can see this behavior clearly in the price action. USDT has stayed tightly compressed around $0.9997–$1.0000 despite heavy market volatility elsewhere in crypto. While majors swung aggressively, USDT volume surged above $40B daily without any meaningful downside pressure. That kind of stability during high-volume periods tells me demand is absorbing supply efficiently. Expert Analysis: When I look at what professional traders are actually watching, the $0.99 area comes up repeatedly as the line in the sand for short-term stress. Price hasn’t come close this week. On the upside, several traders note that brief pushes above $1.00 tend to happen during risk-off rotations or when leverage resets across futures markets. That sets up a clean, asymmetric long with very tight risk. Another thing worth noting: traders aren’t talking about exits from USDT. They’re talking about rotating into it. That distinction matters. Rotation flows usually support the peg rather than threaten it, especially over a 5–7 day window. News Impact: There’s no single headline driving this. Instead, the backdrop is macro uncertainty and regulatory noise across crypto. In those environments, traders historically increase USDT usage rather than decrease it. The absence of negative reserve or regulatory shocks keeps the path clear for continued stability and small upside deviations. Trading Recommendation: Here’s my take. This isn’t a moonshot trade—it’s a precision long. I’m comfortable staying LONG on USDT this week with tight stops below $0.9990, targeting a move back through $1.0005 and potentially $1.0015 if rotation flows accelerate. Risk is clearly defined, and the reward, while modest, is consistent with how professional traders are positioning capital right now.
COINBASE:USDTUSDLong
by CrowdWisdomTrading
1
LONGCurrent Price: 0.99855 (Analysis was generated on Monday Morning) Direction: LONG Confidence level: 52%(Signals are mixed and conviction is not strong, but price is sitting right at support and the trader wisdom slightly favors upside protection flows into USDT) Targets Target 1: 0.9994 Target 2: 1.0002 Stop Levels Stop 1: 0.9980 Stop 2: 0.9975 Key Insights: Here’s what’s driving this setup. Several traders are closely watching USDT dominance and repeatedly point out that rising or stabilizing USDT flows usually show up right before or during short-term weakness in broader crypto markets. In multiple discussions, traders highlighted that when Bitcoin and altcoins struggle near resistance, capital quietly rotates back into USDT. That dynamic supports holding USDT long on a short time horizon. Another thing that stands out is location. USDT is trading slightly below the $1.00 peg at $0.99855, which puts it right near the lower edge of its very tight weekly range. When price sits this close to support, the asymmetric trade favors a long bias rather than betting on a sudden de-peg without a catalyst. Several traders explicitly framed this as a defensive positioning phase rather than a speculative one. Finally, even though sentiment volume on X is light, what is there leans constructive. The few trading-focused posts that do exist frame USDT as a buy for capital preservation while volatility picks up elsewhere. That aligns with the broader trader narrative around dominance and liquidity protection. Recent Performance: Over the past week, USDT has done exactly what it’s designed to do: move very little. Price has oscillated between roughly $0.9982 and $0.9998, repeatedly finding buyers below $0.999. Each dip toward the lower end of the range has been absorbed quickly, which tells me there’s no urgency to exit USDT at these levels. Expert Analysis: When I look at the professional trader commentary as a whole, the message is subtle but consistent. Many traders expect choppy or corrective price action across crypto majors, and in those environments, USDT demand tends to increase. Several traders also mentioned that even if Bitcoin pushes slightly higher short term, they still expect follow-through selling afterward, which again favors holding USDT into that move. Technically, the levels are very clear this week. Support clusters around $0.9980–$0.9975, while mean reversion toward the peg sits just under and slightly above $1.00. That clean structure is ideal for a low-volatility long with tight risk control. News Impact: Recent news around Tether expanding its investments and preparing for evolving regulatory frameworks adds a layer of stability rather than risk. Nothing in the current news cycle suggests immediate stress on the peg. If anything, the focus on compliance and infrastructure strengthens short-term confidence in USDT as a parking asset. Trading Recommendation: Putting it all together, I’m taking a LONG position on US Dollar Tether for this week. This is not an aggressive trade; it’s a tactical one. I’m looking for a grind back toward the $1.00 area with limited downside risk, using tight stops below $0.9980. Confidence is moderate because conviction across sources isn’t strong, but price location and trader behavior tilt the odds slightly in favor of a bounce rather than a breakdown.
CRYPTO:USDTUSDLong
by FMN_Society
1
US Dollar Tether at Key Support: Why Traders Are Positioning foCurrent Price: 0.99855 (Analysis was generated on Monday Morning) Direction: LONG Confidence level: 52%(Signals are mixed and conviction is not strong, but price is sitting right at support and the trader wisdom slightly favors upside protection flows into USDT) Targets Target 1: 0.9994 Target 2: 1.0002 Stop Levels Stop 1: 0.9980 Stop 2: 0.9975 Key Insights: Here’s what’s driving this setup. Several traders are closely watching USDT dominance and repeatedly point out that rising or stabilizing USDT flows usually show up right before or during short-term weakness in broader crypto markets. In multiple discussions, traders highlighted that when Bitcoin and altcoins struggle near resistance, capital quietly rotates back into USDT. That dynamic supports holding USDT long on a short time horizon. Another thing that stands out is location. USDT is trading slightly below the $1.00 peg at $0.99855, which puts it right near the lower edge of its very tight weekly range. When price sits this close to support, the asymmetric trade favors a long bias rather than betting on a sudden de-peg without a catalyst. Several traders explicitly framed this as a defensive positioning phase rather than a speculative one. Finally, even though sentiment volume on X is light, what is there leans constructive. The few trading-focused posts that do exist frame USDT as a buy for capital preservation while volatility picks up elsewhere. That aligns with the broader trader narrative around dominance and liquidity protection. Recent Performance: Over the past week, USDT has done exactly what it’s designed to do: move very little. Price has oscillated between roughly $0.9982 and $0.9998, repeatedly finding buyers below $0.999. Each dip toward the lower end of the range has been absorbed quickly, which tells me there’s no urgency to exit USDT at these levels. Expert Analysis: When I look at the professional trader commentary as a whole, the message is subtle but consistent. Many traders expect choppy or corrective price action across crypto majors, and in those environments, USDT demand tends to increase. Several traders also mentioned that even if Bitcoin pushes slightly higher short term, they still expect follow-through selling afterward, which again favors holding USDT into that move. Technically, the levels are very clear this week. Support clusters around $0.9980–$0.9975, while mean reversion toward the peg sits just under and slightly above $1.00. That clean structure is ideal for a low-volatility long with tight risk control. News Impact: Recent news around Tether expanding its investments and preparing for evolving regulatory frameworks adds a layer of stability rather than risk. Nothing in the current news cycle suggests immediate stress on the peg. If anything, the focus on compliance and infrastructure strengthens short-term confidence in USDT as a parking asset. Trading Recommendation: Putting it all together, I’m taking a LONG position on US Dollar Tether for this week. This is not an aggressive trade; it’s a tactical one. I’m looking for a grind back toward the $1.00 area with limited downside risk, using tight stops below $0.9980. Confidence is moderate because conviction across sources isn’t strong, but price location and trader behavior tilt the odds slightly in favor of a bounce rather than a breakdown.
COINBASE:USDTUSDLong
by CrowdWisdomTrading
The Upcoming Collapse of USDT Theter - Thesis Binance and its CEO ‘CZ’ plead guilty to federal charges and agreed to pay $4.3B in fines. But that`s not all! The crypto market is facing increased scrutiny as part of an agreement between Binance's CEO, CZ, and the U.S. Securities and Exchange Commission (SEC). This agreement grants the SEC unprecedented access to Binance's comprehensive records, shedding light on various transactions, fraudulent activities, and instances of price manipulation linked to tether, which significantly influenced the surge in Bitcoin's value. Of particular interest to regulatory authorities is the revelation that CZ has agreed to provide the SEC with access to tether transactions, signaling a deeper investigation into the controversial stablecoin. Tether (USDT) has long been tethered to the value of the U.S. dollar, yet recent events have sparked concerns about its stability and transparency. What makes this development particularly noteworthy is the emerging focus on tether by U.S. agencies, who seem to be strategically positioning themselves to potentially replace it with Central Bank Digital Currencies (CBDCs). Unlike stablecoins such as USDT, CBDCs are issued and regulated directly by the central bank of a country, eliminating reliance on private entities or community-driven initiatives. As the SEC gains access to the intricate details of Binance's operations and tether transactions, the crypto community is left on edge, grappling with uncertainties regarding the future of stablecoins and their role in the broader financial landscape. The evolving narrative suggests a potential paradigm shift as regulatory bodies aim to instill confidence in the market through the adoption of government-backed digital currencies over privately issued stablecoins. The SEC's focus extends beyond Binance to specifically target USDT, with the intention of replacing it with Central Bank Digital Currencies (CBDCs) to assert control over all transactions. This strategic move is seen as a prerequisite for potential approval of an ETF in the future. Notably, Binance has been implicated in facilitating transactions linked to terrorist groups, including Hamas' Al-Qassam Brigades, Palestinian Islamic Jihad, al-Qaida, and ISIS, as highlighted in a statement by Treasury Secretary Janet Yellen. Looking forward to read your opinion about it!
COINBASE:USDTUSDShort
by TopgOptions
1
TETHER (USDT) COLLAPSE IS IMMINENT! With the United States about to pass strict regulation regarding stablecoins, which includes a measure to insure "Robust transparency, audit and reporting requirements," Tether is absolutely doomed, as they have consistently refused to confirm a 1:1 peg to the USD through an independent, third-party audit, which in my book, is because they're not doing it. Something is fishy with Tether, and I would not be surprised if it has not maintained the 1:1 peg as it has claimed, but will soon be exposed as a fraud, and a ponzi scheme designed to benefit its owners at the expense of the general public. On April 9th, Senator Kirsten Gillibrand (D-N.Y.) announced that: "This legislation develops two paths for stablecoin issuers. 1- The first path would be for depository institutions that would allow for both federal and state bank charter depository institutions to become stablecoin issuers after an approval process. 2- The other path would be for nondepository institutions that would give the federal government supervisory authority over the state nonbank institutions while preserving states as the primary functional regulator." This spells the end for Tether, and certain doom for any company whose business model relies upon it, such as: Exchanges, OTC desks, Trading Platforms and Wallets, Remittance Services and DEFI Platforms. You were warned! Don't get caught holding the bag!
COINBASE:USDTUSDShort
by MetaShackle
2
WHY IS THE FEDERAL RESERVE PUSHING FOR STABLECOIN REGULATION?WHY IS THE FEDERAL RESERVE PUSHING FOR STABLECOIN REGULATION? Federal Reserve Chair Jerome Powell emphasizes the need for a legislative framework for stablecoins to ensure financial stability. The Fed’s push for regulation highlights the growing integration of stablecoins with the traditional financial system and their potential risks. Recent financial turmoil involving stablecoins, like the USD Coin incident, showcases their vulnerability and interconnectedness with traditional banks. Looks like the Federal Reserve is steering America toward a future where stablecoins are not just acknowledged but also regulated. In his recent meetings with House Democrats, Jerome Powell made it plain that a legal framework for stablecoins is an absolute must if the United States is to effectively traverse these unexplored seas. This position shows a major change in attitude toward digital currencies, which is indicative of the increasing awareness of the possible effects they may have on the conventional financial system. The Case for Regulatory Frameworks Financial experts have come to a common understanding, as Powell has pointed out, that without a regulated framework, digital currencies might face problems as they gain popularity. One way to protect one’s wealth from the ever-changing cryptocurrency market is to invest in stablecoins, which are tethered to conventional currencies such as the US dollar. In addition to allowing merchants to make rapid transactions, they also provide a way to store or transfer funds independently of banks and are becoming more integrated into the traditional financial system. But this connection isn’t risk-free. Recent events at Silicon Valley Bank and Circle Internet Financial Ltd. show how stablecoins are susceptible to swings in the conventional banking industry. Circle Internet Financial Ltd. had a large amount of USD Coin reserves stuck in the failing bank. Even while stablecoins are intended to be stable, they may still be affected by actual financial crises, which can impact both their value and the market as a whole. As an example of how closely linked digital currencies are to the conventional banking system, consider the USD Coin event, in which its value fell below $1 during a banking crisis before recovering due to government intervention. The Ripple Effect on Monetary Policy Stablecoin regulation is important to the Federal Reserve for a number of reasons, including but not limited to avoiding market volatility and mitigating their influence on monetary policy. Conventional methods of monetary regulation face a serious threat from the advent of narrow banks, stablecoins, and central bank digital currencies (CBDCs). One example of how financial regulation is changing is the way the Federal Reserve has changed its monetary policy practices since 2007. These include paying interest on reserves and using reverse repos and central bank reserves to influence interest rates. Looking at digital currency makes this transition even more apparent. Interest rate setting and the total amount of the Federal Reserve’s balance sheet are only two areas where CBDCs and stablecoins have the ability to cause significant systemic disruption. In their published study, the Federal Reserve examines these effects and notes that monetary policy adjustments may be required to forestall a decline in lending and preserve economic stability in the case of digital currency integration. Based on the similarities between stablecoins and CBDCs, the study concludes that digital currencies with higher interest rates would attract more investors and deter depositors from going to conventional banks, which might have an effect on lending volumes. As a result, the equilibrium interest rate would fall and the central bank would have less room to manoeuvre in times of crisis if this scenario plays out. Another nuance comes from the idea of “narrow banks,” which compete with traditional commercial banks for customers’ deposits but do not provide loans themselves. Commercial banks may see a decline in lending capacity and repercussions to the loan market as a whole if depositors flee to these institutions due to their lower interest rates and easier structure.
COINBASE:USDTUSDLong
by henryartem
TETHER is becoming increasingly more unstable.Tether is the biggest Ponzi scheme in the history of crypto and is becoming increasingly more unstable every day. USDT is subject to many factors, such as the rising and falling value of the dollar and the constant increase of Tether into Infinium to manipulate the price of other cryptocurrencies that are solely reliant upon USDT for purchase. I do believe that we will see a day in the very near future when Tether (USDT) will collapse and lose the vast majority of its value overnight, much like the TerraUSD/LUNA collapse, except it will be orders of magnitude more extreme as Tether has a market cap that TerraUSD could only dream of, even in its heyday. If you hold large amounts of TETHER on any blockchain, you're taking massive, unseen risk.
COINBASE:USDTUSD
by MetaShackle
Keep an eye on USDT/USD pair I have been checking USDT/USD pair since last weeks, and already had some thoughts that something is coming, before the news came out about Huobi. Honestly, I was expecting that something will happen to Binance, but... Currently, Important price level on USDT is 0.9898$ Breaking below, may lead the price lower. Ofcourse this will affect negative on Crypto Market. FTX crash dropped USDT to 0.97$ I believe that it will be another negative move to scare people.
COINBASE:USDTUSD
by vazitrades
2
USDT/USD Hidden Bearish Divergence Deathcross SetupUSDT, the so-called stable coin, is now below the Bullish Control Zone on the RSI and is showing MACD Hidden Bearish Divergence on multiple Intraday Timeframes at this level after failing to take back the 55 and 89 EMAs. If this goes as any other chart normally would, I would expect it to go back down to the lows of the range, which in this case would take us down to around 94 cents, but I wouldn't be surprised if it went lower.
COINBASE:USDTUSDShort
by RizeSenpai
2
USDT Tether 82.45% of the reserves held in U.S. Treasury bonds !SIVB SVB Financial Group suffered the most severe bank run since Lehman Brothers for selling bonds at a $1.8Bil loss just to raise cash! They had one of the worst possible yields as well: 1.79. USDT Tether said on Dec 2nd, 2022, that its equity is expanding swiftly, with "82.45% of the reserves held in U.S. Treasury bonds and other cash equivalents." What yield do you think Tether has? I think we are about to witness USDT Tether`s collapse.
COINBASE:USDTUSDShort
by TopgOptions
Tether's reserve program will drive the trend of BTCTether, the issuer of the stablecoin leader USDT, had announced in its reserve report last week that it held $1.5 billion in bitcoin, or about 2% of its reserves Just last night, Tether officially announced that it will be buying more bitcoin on a regular basis. Tether to Use 15% of Net Profit to Buy Bitcoin According to Tether's official tweet, the new reserve plan indicates that Tether will regularly use 15% of its net profits to purchase bitcoin, which is also part of Tether's reserve assets: Starting this month, Tether will periodically allocate up to 15% of its net realized revenue to bitcoin purchases. These bitcoins should be viewed as 100% backing Tether's minimum reserve assets. If we take Tether's first quarter net profits of $1.48 billion, that would cost the company about $220 million to purchase bitcoin. Tether to Self-Custody Bitcoin Tether's blog details the intent of the program, which aims to ensure a stable peg of USDT to the US dollar through a diversified reserve approach. At the same time, Tether has made it clear that it will not choose to have its bitcoin assets hosted by a third party: While third-party custody of bitcoin is a common method for many institutional investors, Tether believes in "not your keys, not your bitcoins" and therefore maintains its own private keys associated with bitcoin assets. Tether's Chief Technology Officer, Paolo Ardoino, also expressed his excitement about this decision to invest in Bitcoin and believes that it deepens the company's culture beyond the financial considerations: "We are not just investing in Bitcoin: Our investment in Bitcoin is not only a way to improve the performance of our portfolio, but it is also a way to align ourselves with a transformative technology that has the potential to reshape the way we do business and the way we live. Tether has cut 90% of its bank deposits in Q1 2023, shrinking from $5.3 billion to $481 million since the U.S. banking turmoil, and has instead increased its holdings of U.S. Treasuries, which as of Q1, Tether has over $53 billion in Treasuries. Tether is afraid of bank thunder! USDT Q1 reserves slashed 90% of bank deposits, U.S. debt broke 53 billion magnesium
BITSTAMP:USDTUSD
by LIMHUI1222
What is Tether and why I am staying far away from itNow Tether is not your usual crypto currency. It’s not something you buy low and sell high. What you’ll notice is that the price oscillates around the 1.000 mark. It’s not your usual crypto currency. It’s what’s known as a stable coin. So its main goal is to track the US dollar’s price 1:1 And tether is not a long-term investment that will grow your money by itself because it stays pegged to the U.S. dollar. So, investors use this crypto coin to hedge against the US dollar . Investors use this crypto coin to gain exposure to the US dollar but in crypto form. Tether also sometimes acts as a “bridge” between the fiat and crypto world – as in people often buy stable coins to then buy other cryptos It’s for the investors who want to invest and diversify their money in a non-government measure and to control their own finances instead of putting the money in banks. Sounds good and safe right? The problem is that Tether (USDT) always denies an audit. They have also been investigated by the NY Attorney General’s office for lying about their reserves. Also there is major volatility and uncertainty with crypto exchanges since the FTX and Alameda debacle. Binance (One of the largest Crypto currency exchange) even paused customer deposits of stable coins USD Coin and Tether on Thursday morning without explanation. This is not safe as a hedge in my opinion. Hence, it’s another reason to stay away from even stable coins like Tether…
COINBASE:USDTUSDEducation
by Timonrosso
1
I wouldn't buy Tether with a Barge Pole here's whyI absolutely agree that Tether is yet another Penny crypto that should not be touched with a 10 foot pole. Now Tether is not your usual crypto currency. It’s not something you buy low and sell high. Take a look at the chart before I continue. Tether is not one I would consider buying. What you’ll notice is that the price oscillates around the 1.000 mark. It’s not your usual crypto currency. It’s what’s known as a stable coin. So its main goal is to track the US dollar’s price 1:1 And tether is not a long-term investment that will grow your money by itself because it stays pegged to the U.S. dollar. So, investors use this crypto coin to hedge against the US dollar. Investors use this crypto coin to gain exposure to the US dollar but in crypto form. Tether also sometimes acts as a “bridge” between the fiat and crypto world – as in people often buy stable coins to then buy other cryptos It’s for the investors who want to invest and diversify their money in a non-government measure and to control their own finances instead of putting the money in banks. Sounds good and safe right? The problem is that Tether (USDT) always denies an audit. They have also been investigated by the NY Attorney General’s office for lying about their reserves. Also there is major volatility and uncertainty with crypto exchanges since the FTX and Alameda debacle. Binance (One of the largest Crypto currency exchange) even paused customer deposits of stable coins USD Coin and Tether on Thursday morning without explanation. This is not safe as a hedge in my opinion. Hence, it’s another reason to stay away from even stable coins like Tether…
COINBASE:USDTUSDEducation
by Timonrosso
Will Tether be the next LUNA ❓❗Hello guys, i want to discuss with you the new trend of the previous couple weeks. Tether I would like readers to comment there opinion Is it possible that crypto will end like this ❓❗ The largest stablecoin at the moment (Tether USDT) has drawn rumors since it hasn’t made its supporting documentation public. This comes after numerous opinions from the cryptocurrency world that the USDT cryptocurrency pair would crash next due to its incompetence in creating its “secret sauce.” If Tether fails it would drag everything down with it and trigger a significant sell-off in cryptocurrencies.
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by CryptoMonstersOfficial
1
Tether - The ominous precedent and another scapegoat?The recent market volatility and unprecedented movements in the cryptocurrency market brought along the critical question of stablecoin safety. Just within a matter of a few days, the whole cryptocurrency market was shaken up by the downfall of a stablecoin named Luna, which lost 99% of its value; this sets the ominous precedent for what might occur in the Tether (owned by Bitfinex). Already back in July 2021, Jannet Yellen, the U.S. treasury secretary, summoned Jerome Powell and the head of the Securities and Exchange Commission to discuss Tether and the danger it poses. Then in October 2021, the Commodity Futures Trading Commission (CFTC) filed and settled legal cases against iFinex Inc., BFXNA Inc., and BFXWW Inc. The actual text (only excerpts) from the CFTC website 1st excerpt “The Tether order finds that since its launch in 2014, Tether has represented that the tether token is a stablecoin with its value pegged to fiat currency and 100% backed by corresponding fiat assets, including U.S. dollars and euros. However, the Tether order finds that from at least June 1, 2016 to February 25, 2019, Tether misrepresented to customers and the market that Tether maintained sufficient U.S. dollar reserves to back every USDT in circulation with the “equivalent amount of corresponding fiat currency” held by Tether and “safely deposited” in Tether’s bank accounts. “ 2nd excerpt In fact Tether reserves were not “fully-backed” the majority of the time. The order further finds that Tether failed to disclose that it included unsecured receivables and non-fiat assets in its reserves, and that Tether falsely represented that it would undergo routine, professional audits to demonstrate that it maintained “100% reserves at all times” even though Tether reserves were not audited. 3rd excerpt “Tether held sufficient fiat reserves in its accounts to back USDT tether tokens in circulation for only 27.6% of the days in a 26-month sample time period from 2016 through 2018. “ Illustration 1.01 The recent disconnect in the peg between the USD and Tether is shown above. It can be observed that the panic lasted only little bit over two hours. However, slope of the decline is reminiscent of one in Luna. Illustration 1.02 The weekly chart of the crypto total market cap shows a substantial decline since the beginning of the downtrend in November 2021. The orange line shows BTCUSD, a positive correlation between market-cap and BTCUSD. Bitcoin has the highest dominance in the cryptocurrency market; therefore, it has the most significant impact on the crypto total market cap's movement. A strong positive correlation can also be observed between Bitcoin and the tech industry; the light blue line in the lower graph shows Nasdaq 100 CFD. Illustration 1.03 The picture above shows the massive drop in Luna stablecoin. Please feel free to express your ideas and thoughts in the comment section. DISCLAIMER: This idea is not intended to encourage any buying or selling of any particular securities; it is merely an opinion. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
BINANCEUS:USDTUSD
by Tradersweekly
24