Bitcoin has been slanmmed again, from above 91K to under 88K.
Fingers are being pointed at the chatter about Tether, S&P downgraded USDt's ability to maintain its peg, citing Tether's Bitcoin and gold reserves as a concern.
Tether managed have lashed out, slamming the rating agency.
In addition, U.S. crypto exchange BitMEX’s co-founder Arthur Hayes warned that Tether could become insolvent if the value of its gold and Bitcoin reserves were to fall by roughly 30%. Hayes said Tether has been increasing its exposure to these assets as a wager on future U.S. rate cuts, but his review of the company’s most recent audit suggests such a decline in their value would wipe out Tether’s equity entirely — a scenario that could leave USDT effectively worthless.
Info via various crypto focused media.
