I recently saw news about Bitcoin and Tether and felt a bit confused. Tether is buying Bitcoin and gold, seemingly to prepare for possible interest rate cuts. But I heard that if the prices of these assets drop by 30%, Tether could run into problems. Does this mean that Bitcoin price fluctuations can affect the stability of USDT? As a newbie, I still don't quite understand these complex relationships. Can any experts help explain how USDT and Bitcoin prices actually influence each other? I feel this could also impact our small retail investors' trading strategies.
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I recently saw news about Bitcoin and Tether and felt a bit confused. Tether is buying Bitcoin and gold, seemingly to prepare for possible interest rate cuts. But I heard that if the prices of these assets drop by 30%, Tether could run into problems. Does this mean that Bitcoin price fluctuations can affect the stability of USDT? As a newbie, I still don't quite understand these complex relationships. Can any experts help explain how USDT and Bitcoin prices actually influence each other? I feel this could also impact our small retail investors' trading strategies.