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BTC shot up (by about 250%) the last time Tether was nearly shut down as well, as the NY AG was investigating them from Apr - Jun 2019. It makes sense when you
by nostrademons 5y ago
BTC shot up (by about 250%) the last time Tether was nearly shut down as well, as the NY AG was investigating them from Apr - Jun 2019.
It makes sense when you consider that the population holding cryptocurrencies generally considers the USD worthless (you see that in some of the other posts here). USD are not an option. If Tether goes under, the next most stable reserve currency of the crypto economy is Bitcoin, so money flies out of Tether and into Bitcoin, pumping the price up.
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- stickfigure 5y agoAccording to this article [1], about 70% of the current buy pressure on BTC comes from USDT. If tether value collapses, that tether won't be able to afford any BTC, so it won't matter where it flies to. And 70% of the buy pressure on BTC will disappear. [1] https://crypto-anonymous-2021.medium.com/the-bit-short-inside-cryptos-doomsday-machine-f8dcf78a64d3 https://crypto-anonymous-2021.medium.com/the-bit-short-insid...