“The downtrend of altcoins ‘real reason’ reveals Tether’s stable holdings”

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Caitlyn Long, CEO of Avanti Financial
(Photo = Caitlyn Long Twitter)

[Blockchain Today reporter Seo-yeon Jang] Recently, there were claims that Tether’s disclosure of stablecoin holdings may have contributed to the sale of Altcoins last week, Cointelegraph reported.

In a tweet on the 15th (local time), Caitlin Long, the founder and CEO of Avanti Financial, said, “The disclosure of the holdings of Tehter Holding Limited is in’short-term, low-risk, liquid securities’. “It’s not an investment in Korea, it’s invested in credit assets that’who knows the quality’.” “It may have felt that traders had to sell other cryptocurrencies to reduce their overall risk exposure,” he said. This is because the stablecoin, which ranked sixth with a market capitalization of $58 billion, has the potential to attract other tokens during the credit market adjustment process.

Long said, “If Tether invests in this way and maintains a de facto credit hedge fund, we can now safely predict that the price of bitcoin and cryptocurrency in the market is likely to show a high correlation with the credit market.” It will probably be coordinated together,” he said.

Long said authorities could still choose to crack down on stablecoins after the release of Tether’s reserve, but added that the cryptocurrency industry could benefit from regulatory clarity. “One of the best things about the industry right now is that US regulators, especially the Fed and the SEC, consider stablecoins to be okay,” he said. “Stablecoins are a very important link between the cryptocurrency US dollar.”

According to the Tether Holdings Limited report, 75.85% of USDT support is formed by cash and equivalents, and new company drafts account for 65.39% of this. If Tether made an investment in Treasury short-term securities that accounted for only 2.94% of total cash, cash equivalents, other short-term deposits and new company bills, rather than long-term high-risk assets, they argued that potential errors in the market would be completely avoided.

The CEO’s opinion came after the price of Bitcoin (BTC) fell below $46,000. Bitcoin was $45,818 as of local media coverage, and has fallen by more than 20% over the past seven days. However, it is not clear what role Tether’s disclosure played in the cryptocurrency market. According to Bloomberg reports, the U.S. Department of Justice and the IRS are investigating the cryptocurrency exchange Binance for allegations of “illegal activity”.

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