Tether’s USDT, the largest stablecoin by market capitalization, is facing a significant shift today as it is delisted from European Union (EU) exchanges. This move, triggered by the EU’s new MiCA regulations, has sparked a wave of fear, uncertainty, and doubt (FUD) across the crypto market. However, some analysts, like Axel Bitblaze, believe this could present a unique buying opportunity, similar to past Tether-related FUD events.
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— Axel Bitblaze 🪓 (@Axel_bitblaze69) December 29, 2024
➔ 5. NYDFS Slams Tether:
In December 2020, the NYDFS demanded Tether submit its financial papers amidst rumors that USDT was not fully backed.
During this period, BTC dropped 10%, and altcoins fell by 30%.
However, just weeks later, the biggest bull run began. BTC surged… pic.twitter.com/SpzLda8q7w
Why Is USDT Being Removed from EU Exchanges?
The delisting stems from the EU’s recently enacted MiCA regulations, which impose strict rules on stablecoin reserves. Tether has not met these reserve requirements, prompting exchanges in the EU to delist USDT. It’s important to note, however, that this doesn’t render USDT illegal in the EU. According to Bitblaze, while trading USDT on MiCA-compliant exchanges is restricted, investors can still hold USDT in non-custodial wallets or trade it on decentralized exchanges (DEXs).
Is the Stablecoin Market in Trouble?
Despite the delisting, the stablecoin market remains strong. USDT still boasts a market cap of $138.5 billion and a daily trading volume of $44 billion, with 80% of that volume originating from Asia. Bitblaze reassures investors that the value of their assets is not dependent on the specific stablecoin used. Whether holding USDT, Bitcoin, or fiat currency, assets remain safe as long as they are stored securely. Bitblaze suggests that the current situation may even be more bullish than bearish.
Tether’s Resilience in the Face of FUD
Tether has weathered similar FUD storms in the past and emerged stronger each time. For instance, when the U.S. government investigated Tether in October 2024, Bitcoin’s price briefly dropped by $2,000. However, following the denial of claims by Tether’s CEO, Bitcoin quickly recovered, soaring by 43%. Such events, while causing temporary price dips, have often been followed by strong bull runs.
Tether FUD: A Signal to Buy?
According to Bitblaze, Tether-related FUD historically signals a buying opportunity. These events often occur when the market is at a low point or during a bull run, making it an ideal time to invest. Bitblaze advises investors to monitor current prices and revisit them in early 2025, predicting that most assets will have appreciated significantly by then.
Also Read: Bitget Launches GIGAUSDT Futures Trading with 50x Leverage
Despite the EU delisting, USDT is expected to maintain its dominant position in the stablecoin market. As its market cap and demand continue to grow, this temporary setback is unlikely to alter USDT’s long-term prospects.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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