Bitcoin Price Prediction as Tether Discontinues USDT Support on BTC Blockchain – Will Crypto Prices Keep Falling?
Bitcoin (BTC), the largest cryptocurrency globally, has experienced a downward trajectory in recent months, with its price sliding from $28,000 to approximately $26,220 today.
This decline can be attributed in part to Tether's recent move. Tether, the leading stablecoin, decided to stop supporting USDT on the Bitcoin blockchain.
Bitcoin can no longer be used to trade USDT, affecting its value and possibly increasing market volatility. This change might deter businesses from accepting Bitcoin.
The long-term effects are uncertain but could significantly impact the Bitcoin market.
Elon Musk's sale of his BTC holdings and broader sell-offs are major contributors to the decline.
Amidst this, traders sense Musk might hint at a new investment. Recently, Bitcoin's price dropped by 10%, reaching a low of $26,220, and further declines seem likely.
Tether, the issuer of the USDT stablecoin, is changing its strategy by discontinuing support for USDT on Bitcoin, Kusama, and Bitcoin Cash.
This is due to low usage and security concerns. Tether will no longer mint USDT on these platforms, but users will still be able to redeem their USDT for a year.
They can also swap their affected USDT on platforms like Bitfinex.
Tether may consider reissuing USDT on Bitcoin's Omni layer if usage increases.
They are also exploring collaboration with RGB for future USDT issuance on Bitcoin's layer-2 and 3. This shift is intended to improve the security and efficiency of Tether's issuance strategy.
Tether's decision to halt USDT support for Bitcoin could pose a risk to the Bitcoin market.
Since USDT is widely used in cryptocurrencies, its decreased availability on the Bitcoin Omni layer might result in lower liquidity and trading.
This shift might fuel
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