Tether starting to lose its peg too, after Terra did
Even if tether bought only treasuries, if people then bought bitcoin and then sold those bitcoin to buy treasuries, and then treasuries went down in price due to rising interest rates, tether will become under collateralized…I mean you can’t just lever up 2x on treasuries risk free… a 10x leveraged position on 30 year treasuries would have blown out an account within a few months…