People are not buying BTC to get out of USDT, they're buying other stablecoins and tokens pegged to real world assets. The last week has seen a surge in the price of those tokens compared to USDT. I've made good money arbitraging the bouts of panic.

> But it's not clear to me that pumping being taken away would be a bigger change than people trying to get out of USDT and buying BTC

People trying to get out of USDT into BTC because the USDT:USD parity assumption collapses will boost BTC:USDT prices, but probably not enough to avoid dropping BTC:USD, because it would be less than the USDT:USD drop, is the idea.

How would you sell USDT? You’d buy on a BTC/USDT market. These markets aren’t unified—there are different markets for tether and backed USD. Who would be counterparty to a tether exchange?

Thise specific USDT pairings would crash. If they wanted USD (as they presumably do), they’d then crash the other stable coin or backed pairings.

Bitcoin has no fundamental/breakup value and no market maker.

In the same way that there's no obvious ceiling to its value, if a lot of people try to get out of it at once, there's no obvious floor either.

That’s not quite how it’s gonna work. It doesn’t matter what the Tether market cap is. The BTC market cap is coins x price. If Tethers represent 70% of inflow and they disappear, price is gonna come down. Likely a lot more than 3%.

This is addressed in the article.

Basically the market cap of BTC is not relevant here, but rather the daily volume.

JackFr Fair point. Thank you.

Well, it will be an interesting week for sure.

And from the 3% of tether, probably 74% is actually been backed.