Arthur Hayes Warns 30% Bitcoin Drop Could Erase Tether's Equity Cushion

BitMEX founder Arthur Hayes warned that a roughly 30% decline in Bitcoin and gold holdings could eliminate Tether's equity buffer, potentially rendering USDT theoretically insolvent. Tether reported $181 billion in assets against $174 billion in USDT liabilities as of Q3, with $139 billion held in cash and cash equivalents. The warning follows S&P Global Ratings' negative assessment of USDT stability, citing increased exposure to Bitcoin and gold.