December 6, 2022

Tether Collapse, Bitcoin Likely To Follow” – Peter Schiff

Peter Schiff, has taken another swipe at Bitcoin holders and investors. Peter gave his cents about the incoming loom on the world’s biggest stablecoin, USDT. The Euro Pacific and Schiffgold C.E.O stated that Bitcoin collapse and crash are impending and may happen sooner or later.

Peter Schiff Predicts Bitcoin Collapse, Following USDT Decline

Back with his anti-crypto stance, criticism, and negative forecast, Peter has predicted BTC waking down the same collapse path as USDT. The Metal and Gold mogul stated his predictions about the world’s largest cryptocurrency, BTC, via a tweet from his verified handle.

Sharing a picture of Tether’s market cap chart, Peter Schiff revealed that the USDT, stablecoin has never recorded a price drop. Even when the cryptocurrency market crashed, the USDT market cap never dropped but increased as traders converted their volatile assets to stablecoins.

However, during the market crash a few days ago, Tether’s market Cap and the price declined. This was the first time the stablecoin declined during a bear, as it always waxed stronger and increased. Peter asserted that if the Stablecoin, USDT could drop, then Bitcoin may follow.

Peter’s tweet has continued to garner reactions as Bitcoin witnessed a worse and bear market in 2022. Bitcoin visited lows in 2022, triggered by the collapse of different crypto entities, all of which had a bearish impact. Ranging from Terra, Celsius, Three Arrows, SkyBridge, and FTX crashed a few days ago. 

Tether Denies Lending/Borrowing Funds To Collapsed FTX

Earlier, via a series of Tweets, stablecoin issuer, Tether denied having any relation to collapsed exchange, FTX. The USDT issuer company affirmed that the fall of FTX and other affiliated companies; Alameda Research, and Genesis Global have no impact on the stablecoin. 

According to the blog post, Tether’s USDT is backed by United State Dollars and all its funds are within the operator’s reserve. The issuer affirmed it did not borrow or lend out its coins to FTX and affiliated companies.

Tether further affirmed that the only relation between itself and FTX was USD to USDT issuer. FTX forwards USD to Tether, in which USDT is issued to the firms and exchanges. “We did not offer Alameda to borrow or lend out USDT to FTX and its affiliated company. Tether’s funds are all secured in the stablecoin’s reserve.”

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