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If tether crashed I would expect bitcoins price to go up not down. It would suck for people holding tether because nobody would want their tether.
by DSingularity 6y ago
If tether crashed I would expect bitcoins price to go up not down. It would suck for people holding tether because nobody would want their tether.
- dragonwriter 6y ago> If tether crashed I would expect bitcoins price to go up not down. Bitcoin’s price in what reference currency? USDT? Clearly. USDC? Actual USD (probably measured indirectly via intermediary currencies)? Something else? For anything but USDT, the reason for such an expectation could use some explanation.
- ric2b 6y agoAll of the above if most of the demand from people fleeing from USDT goes into Bitcoin, which is likely. More people chasing the same thing -> price goes up. But obviously the BTC/USDT price would go up a lot more because USDT would be going down at the same time.
- TacticalCoder 6y agoWhat many people believe is that there's not anywhere near the demand to justify a 35 K USD price and that's it's tether printing which pumped the price of BTC to these levels. So if the tether printing press stops, the price would crash back to 3K USD or something in a hurry. Crypto investors/gamblers concerned about tether/USDT already own zero USDT. What they're concerned about is that it would take the entire crypto market down. Now on the very short term it may cause a BTC price spike: should it be true and USDT going down a lot, people hodling them may desperately try to get out and buy any BTC they can, shortly raising BTC's price. But if tether is the reason the BTC price is so high, it won't take long before "zero new issuance of USDT to pump the price" would totally crash the market. In any case it's an interesting story to follow...