Crypto Apocalypse: Peter Brandt predicts the fall of Tether and the dollar

The famous trader Peter Brandt issues a severe warning regarding the future of Tether and the US dollar. His predictions, based on years of observing crypto and traditional markets, raise crucial questions about the stability of stablecoins and the hegemony of the greenback.

Tether in turmoil: a giant with feet of clay?

USDT, the most used stablecoin in the world, is facing increasing criticism. Consumers’ Research, a renowned consumer protection organization, recently published an incriminating report on Tether’s practices.

The document points out several gray areas, particularly concerning the reality of the dollar reserves supposed to guarantee the value of USDT.

Peter Brandt concurs, stating, “My argument for years has been that Tether is ultimately heading for disaster.” This opinion is reinforced by Tether’s persistent refusal to undergo an independent financial audit, fueling suspicions about its actual solvency.

Rating agency S&P also sounded the alarm last December, assigning Tether a concerning risk score. This assessment highlights potential flaws in reserve management and the issuer’s non-compliance with regulatory frameworks.

JPMorgan also shared its concerns, highlighting a growing concentration in Tether as a risk factor for the entire crypto sector. The bank emphasized Tether’s particular vulnerability due to its “lack of regulatory compliance and transparency“.

The US dollar, a foreseen decline!

Beyond the turmoil affecting Tether, Peter Brandt takes a pessimistic view of the future of the US dollar. “The USD will eventually meet its demise“, he asserts, specifying that this event would occur after Tether’s collapse.

This prediction is set against a backdrop of questioning the hegemony of the dollar. Efforts of dedollarization by BRICS countries and the rise of alternative currencies contribute to weakening the dominant position of the greenback on the international stage.

Peter Brandt’s predictions shed a stark light on the vulnerabilities of the current financial system. If they were to materialize, the collapse of Tether and the decline of the dollar could profoundly disrupt the global economy and the crypto landscape.