Arthur Hayes warns Tether’s Bitcoin and gold wager exposes it to main draw back threat

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BitMEX co-founder Arthur Hayes argues that Tether is positioning itself for an upcoming Fed rate-cut cycle by shifting a better share of its reserves into Bitcoin and gold.

Hayes wrote on X on Saturday that Tether’s most up-to-date attestation suggests the agency is getting ready for a rate-cut atmosphere, which would scale back returns on Treasuries however may drive up the value of Bitcoin and gold.

Nonetheless, the analyst cautioned {that a} sharp decline in these riskier belongings may pressure Tether’s fairness cushion and reignite long-running questions on USDT’s solvency.

The Tether people are within the early innings of working an enormous rate of interest commerce. How I learn this audit is that they assume the Fed will reduce charges which crushes their curiosity revenue. In response, they’re shopping for gold and $BTC that ought to in principle moon as the value of cash falls.… pic.twitter.com/ZGhQRP4SVF

— Arthur Hayes (@CryptoHayes) November 29, 2025

In line with the most recent reserve report, Tether holds round $181 billion in belongings to again USDT. The majority of that is in money and liquid securities, together with Treasury payments, repo, and cash market devices.

Different holdings embrace practically $13 billion in treasured metals, near $10 billion in Bitcoin, and greater than $14 billion in secured loans, together with a number of smaller funding classes.

Tether was just lately assigned a “weak” stability ranking by S&P World Rankings after boosting its holdings of riskier belongings, together with Bitcoin, inside its reserves. S&P famous that this method will increase the chance of undercollateralization within the occasion of heightened crypto market stress.

In response, Tether mentioned the S&P’s ranking framework is outdated and doesn’t replicate the dimensions of its each day settlement flows.