Heads up on the Tether front. A new Senate report just dropped, and it’s hitting the wires hard. Senator Blumenthal is pushing the Treasury and DOJ to investigate Tether, claiming 84% of 846 Iran-linked wallets analyzed by investigators ran almost entirely on USDT. For the wallets specifically implicated in terrorism financing, that figure hits 87% according to reports from The Block.
This matters because it puts the primary liquidity source for the whole market in the crosshairs. Tether says they have already helped freeze $550 million in USDT linked to Iran over the last year, but the report claims they have been inconsistent with enforcement. With the Fear and Greed index at 73 and $BTC daily RSI sitting at 75, the market is already looking top-heavy.
BTC is trading at $83,203 after a 3.5% drop this week. If the talk around stablecoin sanctions gains traction, I am looking at a potential flush toward the daily MA20 at $80,951 to clear out the late longs. Funding remains positive across the board, so the downside could be sharp.
Regulatory pressure on stablecoins never ends well for short-term volatility.
Source: The Block, Reuters, Unchained
This matters because it puts the primary liquidity source for the whole market in the crosshairs. Tether says they have already helped freeze $550 million in USDT linked to Iran over the last year, but the report claims they have been inconsistent with enforcement. With the Fear and Greed index at 73 and $BTC daily RSI sitting at 75, the market is already looking top-heavy.
BTC is trading at $83,203 after a 3.5% drop this week. If the talk around stablecoin sanctions gains traction, I am looking at a potential flush toward the daily MA20 at $80,951 to clear out the late longs. Funding remains positive across the board, so the downside could be sharp.
Regulatory pressure on stablecoins never ends well for short-term volatility.
Source: The Block, Reuters, Unchained
