Arthur Hayes: Tether bought gold and Bitcoin due to the anticipation of interest rate cuts; if assets drop by 30%, USDT may go bankrupt

BitMEX co-founder Arthur Hayes posted on platform X regarding the Tether audit report, stating, "The Tether team is in the early stages of large-scale interest rate trading. They believe the Federal Reserve will cut interest rates, which will significantly reduce interest income. To cope with this situation, they are buying gold and Bitcoin; theoretically, as the price of currency falls, the prices of these assets should soar. If the holdings of gold and Bitcoin drop by about 30%, their equity will be wiped out, and at that point, USDT could theoretically go bankrupt. I believe some large holders and exchanges will demand real-time visibility into their balance sheets to assess Tether's solvency risk."