Arthur Hayes: If Tether's gold and bitcoin holdings drop by about 30%, it could theoretically lead to USDT bankruptcy
Foresight News reported that BitMEX co-founder Arthur Hayes stated that Tether is engaging in a large-scale interest rate trade. If the Federal Reserve begins to cut interest rates, it could have a significant impact on Tether's interest income. To address this risk, Tether has started investing in gold and bitcoin. If its investments in gold and bitcoin experience a decline of about 30%, Tether's equity will be at risk, which could theoretically lead to the bankruptcy of USDT.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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