BitMEX co-founder Arthur Hayes said that the world’s largest stablecoin issuer, Tether, is preparing for a Federal Reserve rate‑cut cycle. He is concerned that as Tether increases its exposure to Bitcoin and gold, it also increases the chance that a sharp pullback in those assets could weaken its equity cushion. While Hayes called this a massive risk, the broader crypto market argues that Tether is far more financially strong than it is perceived to be. Hayes Sounds the Alarm Hayes said that Tether’s la ...

The Tether folks are in the early innings of running a massive interest rate trade. How I read this audit is they think the Fed will cut rates which crushes their interest income. In response, they are buying gold and $BTC that should in theory moon as the price of money falls.A roughly 30% decline in the gold + $BTC position would wipe out their equity, and then USDT would be in theory insolvent. I'm sure some large holders and exchanges will demand a real-time view of their B/S so they can assess the solv ...

Strategy calmed investors after another exclusion from the S&P 500 Index and said that its balance sheet remains solid even as Bitcoin crashed to $80,000 not long ago. In a post on X, the company said its Bitcoin reserves, 649,870 BTC worth roughly $56 billion at current prices, continue to far exceed its debt load, despite a difficult quarter for both the asset and the company’s stock.   All is Good, Strategy Claims At a Bitcoin price of $74,000, which is close to Strategy’s average cost basis, the co ...