Bitcoin is supposed to be a store of value, is it not? If most of this 'value' stored turns out not to be real, the implications for the price of Bitcoin are not good. If the value of USDT falls to nothing then USDT holders trying desperately to offload aren't going to create much demand for BTC, compared with what was being created when new USDT supposedly worth a dollar entered the system every day. And if the price of BTC falls, it isn't a very good store of value any more so people who have traded legitimately earned wealth for BTC have an even stronger incentive to sell. If 70% of gold's daily trading volume was down to orders based on fake gold securities, it would also be a very bad time to hold gold (but at least if you took a big enough loss you'd find someone that wanted it for reasons other than their belief about its ability to hold value)
It amazes me how Bitcoiners scream 'hyperinflation' every time the Fed prints more money (with the goal of increasing prices by 2% annually) and yet struggle to understand the relationship between Tether printing dollar-denominated crypto-purchasing vouchers (with the goal of increasing crypto prices by as much as possible) and the supposed dollar price of BTC
It amazes me how Bitcoiners scream 'hyperinflation' every time the Fed prints more money (with the goal of increasing prices by 2% annually) and yet struggle to understand the relationship between Tether printing dollar-denominated crypto-purchasing vouchers (with the goal of increasing crypto prices by as much as possible) and the supposed dollar price of BTC