The post Tether Delisting from EU Exchanges: What It Means for the Crypto Market appeared first on Coinpedia Fintech News
Tether’s USDT the largest stablecoin by market cap, is set to be delisted from EU exchanges starting today, creating a situation of fear, uncertainty, and doubt (FUD) in the crypto market. However, crypto analyst Axel Bitblaze believes this might not lead to a market crash but instead could be another buying opportunity, similar to past Tether FUD events. While the majority of exchanges have stopped operating in the EU this will not create a major impact on crypto despite a short-term correction.
12/➔ Conclusion:Tether FUD means buying opportunity, and the same goes for China ban FUD too.Interestingly, you'll either hear these FUDs at the pico bottom or during the full-blown bull run.Do one thing, take screenshots of crypto prices today and then wait till…
— Axel Bitblaze (@Axel_bitblaze69) December 29, 2024
What does it mean for crypto?
The delisting of USDT is a result of the European Union’s new MiCA regulations, which require stablecoins to follow strict rules on reserves. Tether has failed to meet these requirements, which is why exchanges in the EU are forced to remove it from their platforms. However, this does not mean that USDT will become illegal in the EU. According to the analyst EU crypto investors can still hold USDT in their non-custodial wallets and freely trade them on decentralized exchanges (DEXs). The restrictions apply to trading USDT on MiCA-compliant exchanges.
Despite the panic, Bitblaze points out that the stablecoin market performance is strong. Hence, if you bought crypto with USDT, there’s no need to worry. USDT continues to maintain its $138.5 billion market cap and $44 billion in daily trading volume, with 80% of its volume originating from Asia. The value of your crypto depends on the coins or tokens you own, not how you bought them. So, whether you use USDT, BTC, or fiat money, your assets are safe in your wallet or on the platform you’re using. The event is more bullish than bearish.
Historically it’s Bullish!
Bitblaze points out that Tether has faced similar FUD in the past, and each time, the market has bounced back. Going back to the past events, in October 2024, when the U.S. government launched an investigation on Tether, following the news Bitcoin dropped by $2,000 in minutes. However, after Tether’s CEO denied the claims, Bitcoin quickly recovered, rising by 43%. Other FUD events, such as accusations from the UN and attempts to depeg USDT, also caused temporary drops in the market, but these were followed by strong bull runs.
Also Read :
Tether Invests $775M in Rumble and Targets AI Domination by 2025
,
Is it a Buying Opportunity?
Moreover, it is also believed that Tether FUD has historically been a signal for buying opportunities. The analyst concludes that these events typically occur either at the market’s bottom or during a full-blown bull run. He advises crypto investors to take screenshots of current prices and revisit them in February or March 2025, predicting that most assets will be trading much higher by then.
Looking at the scenario, USDT is expected to dominate the stablecoin market while its market cap and its demand rise. Even though EU delisting is a setback, it’s unlikely to derail USDT’s long-term success.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
Subscribe to News