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A Sudden Loss of Faith in Tether Would Pose Risk to Bitcoin, JPMorgan Says.

According to analysts at JPMorgan, the bitcoin market could face severe liquidity shock if traders were to lose faith in tether (USDT) – a stablecoin widely used to fund cryptocurrency purchases. .

“If any issues arise that could affect the willingness or ability of both domestic and foreign investors to use USDT, the most likely result would be a severe liquidity shock to the broader cryptocurrency market, which could be amplified by its disproportionate impact on HFT [high-frequency trading]-style market makers which dominate the flow,” analysts at JPMorgan mentioned in an 86-page report published Thursday. .

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