Tether Eyes Interest Rate Moves Amidst Market Uncertainty

Arthur Hayes, prominent figure within the crypto space, recently shared insights on X (formerly Twitter) regarding Tether’s strategic moves in anticipation of a potential Fed interest rate cut. Tether anticipates this reduction could negatively impact its significant interest income. To mitigate this, they are actively investing in gold and Bitcoin, hoping to shield their financial portfolio from a possible downturn. However, if the value of these assets were to plummet by around 30%, it may lead to a substantial decrease in Tether’s equity. This potential dip could jeopardize the solvency of USDT, raising concerns about its stability.