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USDT briefly fell below $0.9980 to its lowest level in more than five years, rekindling liquidity concerns.
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Bitcoin fell when USDT weakened. This shows that prices are sensitive to even minor stabilitycoin stress.
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According to Deso, a researcher at Deso Research, the USDT peg is under pressure.
Tether’s dollar linked stablecoin USDT briefly fell to around $0.9980. This was its lowest level in over five years. This rekindled long-standing concerns regarding the crypto market’s dependence on a single liquidity source.
Analysts said that although USDT recovered modestly later, the move once again demonstrated how sensitive digital assets prices remain to even minor disruptions in stablecoin markets.
Why USDT is Important
USDT is the most widely used stablecoin in the world, accounting for 68.4% all stablecoin users who are active monthly, according to data from Q4 2025. Even minor deviations from the dollar peg can have a rapid impact on markets.
A Controversial Theory Arrives
The depeg coincided in a discussion on social media about a controversial analysis that argues Bitcoin’s long term price behaviour is closely linked to USDT liquidity, rather than organic demand-and-supply dynamics.
Independent researcher Deso claims major Bitcoin tops and bottoms, as well as phases of consolidation, coincide with periods of stress within the USDT peg. According to this view, stablecoins act as a hidden control system that shapes market cycles.
The analyst cites March 2024 as an example, when a brief USDT peg was followed by several months of sideways Bitcoin trading, despite bullish narratives on the wider market.
Liquidity, Not Sentiment?
According to the analysis Bitcoin’s rise from around $16,000 has been driven primarily by liquidity issues rather than real investor demand.
The argument is similar to claims made by critics like Bitfinexed who have long argued that Bitcoin price responds disproportionately to the issuance and flow of stablecoins.
“If there is manipulation, it should be evident in the charts,” the researches argues, pointing out recurring price alignment areas across multiple market cycles. He continues to update the analysis as new data is released.
Analysts say that Tuesday’s action does not represent a larger crisis. Tether has repeatedly stated that USDT is fully supported by reserves, such as U.S. Treasury Bills and other assets. It has also described its business to be one of the most lucrative in the crypto industry.
Even small deviations can cause outsized reactions.
“A bearish market would not be a bearish market without some Tether Fear,” said one trader, adding that previous depeg episodes faded without triggering a systemic collapse.
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