Tether's USDT, the largest stablecoin by market capitalization, is facing a major shift as it gets delisted from EU exchanges starting today. This move has triggered a wave of fear, uncertainty, and doubt (FUD) across the cryptocurrency market.

Cryptocurrency analyst Axel Bitblaze believes it could actually present a unique buying opportunity, similar to past Tether-related FUD events. In a market where volatility is the norm, this latest development raises some interesting questions about the future of stablecoins and the cryptocurrency market in general.

Why was USDT delisted from EU exchanges?

The delisting of USDT is a result of the EU's new MiCA regulations, which impose strict rules on stablecoin reserves. Tether did not meet these reserve requirements, forcing EU exchanges to remove USDT. However, this does not make USDT illegal in the EU.

According to Bitblaze, cryptocurrency investors in the EU can still hold USDT in non-custodial wallets and trade it on decentralized exchanges (DEX). This restriction only applies to trading USDT on exchanges that comply with MiCA.

Is the Stablecoin market in trouble?

Despite the FUD surrounding Tether, Bitblaze points out that the stablecoin market remains strong. USDT maintains a market capitalization of $138.5 billion and a daily trading volume of $44 billion, with 80% of that volume coming from Asia. Bitblaze reassures investors that the value of their assets does not depend on which stablecoin they use to purchase them.

Whether you use USDT, Bitcoin, or fiat currency, your assets remain safe as long as they are stored properly. In fact, Bitblaze suggests that the situation could become more optimistic than pessimistic.

Tether remains resilient

Bitblaze reminds us that Tether has faced similar FUD in the past and always recovered. For example, in October 2024, when the U.S. government launched an investigation into Tether, Bitcoin's price dropped $2,000 within minutes. However, after Tether's CEO denied the allegations, Bitcoin quickly recovered, rising 43%. Other FUD events, such as allegations from the United Nations and attempts to depeg USDT, led to temporary price drops but were followed by strong price rallies.

Tether FUD: Is it a signal to buy?

Bitblaze believes that historical FUD related to Tether is a sign of buying opportunity. These events tend to occur when the market is at its lowest or during a bullish phase. He suggests that cryptocurrency investors take a screenshot of the current prices and revisit them in February or March 2025. He predicts that most assets will be worth significantly more by then.

Despite the EU delisting, USDT is still expected to remain a dominant force in the stablecoin market. As market capitalization and demand continue to rise, this short-term decline is unlikely to change USDT's long-term outlook.

As the market reacts and adjusts, Tether's long-term journey remains something to watch closely.

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