Tether currently holds approximately $9.9 billion worth of BTC, and its gold reserves are as high as $12.9 billion. The total current reserves are $181.2 billion, with liabilities of $174.4 billion, leaving a buffer of $6.8 billion. So here's the question: if the prices of these two assets simultaneously drop by 30%, Tether's excess reserves of $6.8 billion would be wiped out. In this situation, selling off BTC might be the best course of action. Could this also be one of the catalysts for a bear market?
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Tether currently holds approximately $9.9 billion worth of BTC, and its gold reserves are as high as $12.9 billion. The total current reserves are $181.2 billion, with liabilities of $174.4 billion, leaving a buffer of $6.8 billion. So here's the question: if the prices of these two assets simultaneously drop by 30%, Tether's excess reserves of $6.8 billion would be wiped out. In this situation, selling off BTC might be the best course of action. Could this also be one of the catalysts for a bear market?