14.02.202514:27 Forex Analysis & Reviews: Tether could sell part of its assets

The crypto market remains suspended, showing no clear trend for about a month. Reports have spread online that Tether may have to sell non-compliant assets, including Bitcoin, precious metals, corporate securities, and secured loans. This step would be necessary to comply with proposed US stablecoin regulations, according to JPMorgan.

Recently, US legislators introduced two stablecoin-related bills: the Stablecoin Transparency and Accountability for Registry and Economic Improvement (STABLE) Act in the House of Representatives and the Guidance and Establishing National Innovations for US Stablecoins (GENIUS) Act in the Senate. These bills aim to regulate stablecoin issuers through licensing requirements, risk management rules, and a 1:1 reserve backing policy.

JPMorgan reported that only 66% of Tether's reserves would meet the requirements under the STABLE Act, while 83% would comply with the standards under the GENIUS Act. Interestingly, both figures indicate a decline in the compliance ratio since mid-2024, as the supply of stablecoins surged significantly.

Currently, Tether holds approximately 83,758 Bitcoin, valued at over $8 billion at current prices, as part of its reserves, according to its Bitcoin address, which was first confirmed by The Block in 2023. That same year, Tether announced its plan to allocate up to 15% of its quarterly profits toward Bitcoin purchases.

Last month, Tether published its Q4 2024 attestation report, detailing the assets held as reserves for its issued stablecoins as of December 31, 2024. The company unveiled that its reserve buffer exceeded $7 billion for the first time, while its 2024 profits totaled $13 billion.

The STABLE Act introduces stricter reserve requirements and allows for state-level regulation, whereas the GENIUS Act mandates federal oversight for major issuers and permits a broader range of reserve assets. If either bill is passed, Tether would need to restructure its reserves, shifting assets into US Treasury bonds and other liquid assets.

Bitcoin technical outlook

Buyers are currently targeting a return to the $97,400 level, which would open the way to $98,800, bringing the price within reach of $100,200. The long-term target remains $101,200, a breakout above which would signal a return to a medium-term bullish market. In case of a Bitcoin decline, support is expected at $95,900. A drop below this level could push BTC toward $94,300, with the final downside target at $92,700.

Ethereum technical outlook

A stronghold above $2,733 would pave the way toward $2,803, followed by $2,833. The long-term target for ETH is $2,866, surpassing which would confirm a medium-term bullish market. In case of a correction, buyers are expected around $2,683. If ETH falls below this level, it could decline lower to $2,630, with the final downside target at $2,558.