Is Tether’s USDT About to Face Its Darkest Hour? 🌑💰

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Amidst the anxious anticipation of the crypto world, as it waits for the impending crypto bills to cast their shadow, one analyst, with the sagacity of a modern-day Cassandra, foresees a storm of unprecedented proportions on Satoshi Street. Jacob King, a crypto analyst with a flair for the dramatic, has sounded the clarion call, warning of what he deems the “bloodiest event in Bitcoin’s modern history.”

Bitcoin is on the brink of its bloodiest event in modern history and no one is talking about it.

Tether is about to be BANNED once the GENIUS Act passes the Senate. Why do you think they’ve been desperately printing USDT out of thin air, pumping prices to unsustainable all-time…

— Jacob King (@JacobKinge) July 16, 2025

Tether in the Crosshairs?

According to the whispers in the halls of Congress, the GENIUS Act, a piece of legislation gaining momentum, could spell doom for Tether, the behemoth of the stablecoin world. Despite the looming threat, Tether has, in a display of defiance, minted 160 billion USDT, a feat that only cements its dominance in the market. King, however, sees this as a desperate attempt to prop up the market, a last gasp of a giant on the verge of collapse.

He argues that Tether’s recent activities are nothing short of a smoke screen, a desperate bid to maintain the illusion of stability. For years, Tether has been the subject of scrutiny, accused of printing USDT without the necessary reserves, a charge it vehemently denies. Yet, the specter of a ban looms, and the market trembles.

Institutional Outflows Signal Trouble

King’s prophecy of doom is further fueled by the recent wave of ETF outflows, a silent exodus of institutional investors from Bitcoin. He sees this as a clear sign that the “whales” are abandoning ship, leaving the retail investors to face the storm. It’s a scene reminiscent of rats fleeing a sinking vessel, a metaphor that King relishes.

Tether Insiders Dumping Bitcoin?

In a twist that adds to the drama, King claims that Tether insiders are offloading Bitcoin through OTC trades, a move that suggests they are preparing for the worst. If true, this could mean that the market’s most influential players are quietly distancing themselves from the impending disaster, a move that could have far-reaching consequences.

A Structural Collapse?

At the heart of King’s argument is the assertion that Tether is the linchpin of the Bitcoin market. He estimates that a staggering 85–90% of BTC’s daily volume is dependent on USDT, a volume he derides as “fake.” Without Tether, he warns, the facade will crumble, and the true fragility of the market will be exposed. The crypto world, he believes, is built on a foundation of sand, and the removal of Tether could trigger a catastrophic collapse.

While King’s warnings paint a grim picture, it’s worth noting that his views are not universally accepted. The crypto community is divided, with some dismissing his claims as fear-mongering and others taking them seriously. The GENIUS Act, while a cause for concern, does not outright ban Tether but gives it a grace period to comply with regulations. ETF data, contrary to King’s assertions, shows inflows rather than outflows, suggesting that the market is not yet in the throes of panic.

How True is this?

Despite the dire predictions, the crypto market remains a realm of volatility and uncertainty. King’s warnings, while dramatic, open the door for new players like Ripple’s RLUSD to emerge. The GENIUS Act, with its 18–36 month compliance window, offers a glimmer of hope. For now, the market is on edge, but the specter of a “bloodbath” remains just that—a specter, not a certainty.

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2025-07-17 14:07