Tether breaks its peg! The 5 major truths behind this stablecoin storm that investors must see
As the 'stabilizing force' of the crypto market, the recent news of Tether (USDT) dropping below the $0.95 mark has thrown the entire cryptocurrency community into panic. It's important to understand that the core value of stablecoins is their 1:1 peg to the dollar. This price 'depeg' is not coincidental; it is the result of multiple risks converging. Today, let's delve into the key reasons behind this! First, there is the old problem of trust in reserve funds. The latest audit report shows that commercial paper accounts for as much as 45% of USDT's collateral assets, far higher than other mainstream stablecoins. These types of assets are prone to depreciation during market fluctuations, raising questions among investors about their ability to redeem. Additionally, early accusations of misusing reserve funds to cover losses from related transactions have left a lingering trust gap. When panic sets in, it triggers a run on the currency—over 3 billion USDT was redeemed within 24 hours, directly testing Tether's liquidity.
Why did major cryptocurrencies fall after the Fed cut interest rates? A breakdown of the key reasons.
In the market's conventional wisdom, a Federal Reserve rate cut signifies loose liquidity, often leading to a rise in risk assets. However, after the Fed cut rates twice in 2025, major cryptocurrencies such as Bitcoin, Ethereum, and BNB experienced consecutive corrections, not only falling below key price levels but also triggering multiple rounds of contract liquidations. This abnormal trend of "good news followed by a decline" was not caused by a single factor but rather by a concentrated outbreak of multiple contradictions, including expectation gaps, policy signals, and market structure.
1. The "Sell the News" Effect: Expectations of Interest Rate Cuts Had Already Been Overdrawn
- Strictly enforce 'one device, one account, one IP': Only one Binance account per phone, uninstall application clones/dual-opening tools, avoid sharing network among multiple accounts on home/company WiFi. - Prefer operating on Apple devices: Tests show that the risk control trigger rate is lower on iOS, Android devices should avoid rooting or flashing. - Complete the real-name KYC verification: Use your own identity information to complete facial verification, do not register with someone else's identity.
2. Daily operational compliance guidelines (simulate real user behavior)
1. Trading behavior norms
- Reject 'Alpha single scenario': Daily mix of spot, contracts, Web3, and other diverse trades, with Alpha operations not exceeding 50%.
In the past 24 hours, virtual currency market has taken a sharp turn: Bitcoin and Ethereum both plunge, with $588 million in liquidations leading to an escalation in the long-short battle
After a brief surge, a collective pullback has occurred! From October 29 to 30, the crypto market was impacted by signals from the Federal Reserve, with Bitcoin and Ethereum leading the plunge. A wave of liquidations hit the entire network, and the short-term market has completely shifted to a period of volatility. Let's break down the logic behind this 'urgent kill' with the latest data:
Core Market Insights:
- Bitcoin (BTC): After reaching a peak of $113,643.73 yesterday, it sharply fell back, briefly dipping below the $110,000 mark today, hitting a low of $107,925.06, with a 24-hour decline of 2.55%. The current quote is $110,162.88, with a market cap falling to $2.19 trillion and a 24-hour trading volume of $69.14 billion.
#央行 #打击虚拟货币经营和炒作 Don't doubt the strength of Dongda, after all, it is the second largest economy in the world and still has a significant influence in the virtual sphere. Although its influence has greatly diminished for various reasons, retail investors should continue to pay attention to Dongda's financial trends to avoid needle loss!