I’m not so sure it will collapse (now), this settlement adds legal clarity. The CFTC has set their parameters in the settlement and will enforce compliance, BitFinex/Tether paid a fine. Tether will be stronger through greater reserve and investment grade requirements, and more transparent.
Nah it certainly doesn't. This only covers up to February 2018. At the time they only had $2B in issued USDT, and of course, they remain under investigation by the DOJ and SEC.
The BTC price is currently held up by USDT inflows, rather than USD. Tether issuance notifications are the most reliable leading indicator in crypto: they are all you need to trade BTC.
Most people in crypto aren't even aware of the problem. Most of the ones that are, refuse to accept the situation and get very emotional when it's brought up.
It's very difficult to say because the waterfall of cascading liquidations would shut down exchanges. It would take quite a while for things to settle down enough for a real fiat market to exist. The whole market is propped up by stacked leverage.
Given that it's being issued specifically to manipulate the market (it's not just a 'whale'), and the fact it's involved in 70% of crypto trades, I can't see a way to put a floor on it.
One would assume so. Interesting to see the price rise in advance of the announcement. Maybe this punishment was seen as less severe than it could have been?
You can answer this question yourself by comparing the borrowing rates of USDC, DAI, USDT, BUSD, and GUSD. You can learn more by plotting the interest rate basis point spread on a time-series line chart. If the borrow rate for USDT was 18%, the borrow rate for USDC was 6%, and the borrow rate for DAI was 4%, what would that tell you?
Of course "the market" is people, and algorithms watching what the people and other algorithms do, so is not immune from excessive optimism or pessimism, as the stock market should demonstrate
