The countdown of the Tether time bomb has come to an end. First warning was from J.P Morgan, and the second was from Elon Musk.
"There is a $ 34 billion tether in the $ 1.5 trillion market."
This perception needs an explanation, because it is a very misleading indicator of calculating a company's value from the stock value.
Increasing BTC price by $1000 also increases the "total market value by 19 billion USD" but mainly $1000 dollar increase in BTC price affects only a certain number of BTC. This is like selling 1% of a share of a company for $1000 each, and the value of the whole company means $19 billion. The amount of BTC bought and sold on crypto exchanges is far below the total market cap. The volumes we see are the same BTC that has been changing between holders many times.
The simplest way to put it, approximately 1.1 million of all BTC is under the control of Satoshi Nakamoto, so 60 billion USD of the total market cap is completely locked and cannot be bought and sold. There are many hard wallet / cold storage locked btcs like this one. (e.g. BTC purchased for investment, which cannot be easily bought and sold when the market moves)
As it can be seen from here, the daily transaction volume of 1 trillion dollars worth of BTC assets is 60-80 billion dollars. This number also includes the same shares that were exchanged multiple times.
In summary, nobody can predict the magnitude of the destruction that will occur if the trust in USDT is damaged. Trust is everything in crypto. As soon as trust is destroyed, the value of 1 trillion goes away instantly without any hesitation. No one can predict what will happen tho. The best possibility is to give USDT penalty bags under hand. It's not good that a market is so prone to breakout from one point. I hope this USDT case will be resolved and we will have a healthy bitcoin market.
PLEASE CONSIDER! These are all my personal expectations, ideas or opinions and they are not an investment advice.
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