A USDT depeg could trigger widespread panic in crypto markets, causing sharp price drops in Bitcoin and altcoins due to its dominant trading pair role. Liquidity pools may dry up, exchanges could face withdrawal surges, and trust in stablecoins might erode, amplifying volatility. Regulatory scrutiny could intensify, impacting Tether’s operations and market stability.

https://tradedog.io/tethers-decoupling-drama/
https://www.cnbc.com/2022/05/12/tether-usdt-stablecoin-drops-below-1-peg.html
https://www.reddit.com/r/CryptoCurrency/comments/16fnrjd/if_there_ever_is_a_usdt_collapse_you_will_not/