What It Means for the Crypto Market | Airdrop Alert Pro

Tether’s USDT, the largest stablecoin by market cap, will be delisted from EU exchanges starting today, creating a situation of fear, uncertainty and doubt (FUD) in the market cryptocurrency market. However, cryptocurrency analyst Axel Bitblaze believes that this may not lead to a market crash, but may be another buying opportunity, similar to past Tether FUD incidents. Although most exchanges have stopped operating in the EU, this will not have a significant impact on cryptocurrencies despite the short-term correction.

What does this mean for encryption?

The reason why USDT was delisted is EU’s new MiCA regulationswhich requires stablecoins to follow strict reserve rules. Tether failed to meet these requirements, which is why the EU exchange was forced to remove it from the platform. However, this does not mean that USDT will become illegal in the EU. EU cryptocurrency investors can still hold USDT in non-custodial wallets and trade freely online, according to analysts Decentralized exchange (decentralized exchange). These restrictions apply to trading USDT on MiCA compliant exchanges.

Despite the panic, Bitblaze noted that the stablecoin market is performing strongly. So, if you use USDT to buy cryptocurrencies, you have nothing to worry about. USDT continues to maintain a market capitalization of US$138.5 billion and a daily trading volume of US$44 billion, 80% of which comes from Asia. The value of your cryptocurrency is determined by the coins or tokens you own, not how you purchased them. So whether you use USDT, BTC or fiat, your assets are safe in your wallet or on the platform you are using. The event is more bullish than bearish.

Historically, this is bullish!

Bitblaze pointed out that Tether has faced similar FUD in the past, but the market rebounded each time. Looking back at past events, in October 2024, after news broke that Bitcoin plummeted by $2,000 in a few minutes, the US government launched an investigation into Tether. However, after Tether’s CEO denied the claims, Bitcoin quickly recovered, rising by 43%. Other FUD incidents such as the UN accusations and attempts to depeg USDT also caused the market to fall temporarily, but were subsequently followed by a strong bull run.

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Is this a buying opportunity?

Furthermore, it is also believed that Tether FUD has historically been a signal of buying opportunities. Analysts concluded that these events typically occur at market bottoms or during full-blown bull markets. He advised cryptocurrency investors to take a screenshot of current prices and revisit them in February or March 2025, predicting that most assets will be trading at much higher prices by then.

Judging from the current situation, USDT is expected to dominate the stablecoin market, with its market value and demand rising. While EU delisting is a setback, it is unlikely to undermine USDT’s long-term success.