Any de-peg for a stablecoin like Tether is a bad sign. It indicates that Tether's price stability mechanisms are unable to cope with the amount of people trying

Any de-peg for a stablecoin like Tether is a bad sign. It indicates that Tether's price stability mechanisms are unable to cope with the amount of people trying to sell Tether. This may indicate one of two things: 1) There are an incredibly large amount of people selling Tether. This indicates low confidence in Tether, low confidence in crypto as a whole, or both. 2) Tether's price stability mechanisms are not particularly robust, and struggle to handle spikes in people selling Tether. This calls into question Tether's claims of stability. Of course, it also may just be a momentary dip that is fixed after a few days. But the entire crypto market is balancing on a knife's edge right now, and this could be what pushes it over.