> The price in USDT and USDT-only exchanges could indeed rocket, but the price in real actual USD would be expected to fall.
Wait, would it?
If you were an arb wouldn't you:
1) Buy bitcoin on a different exchange (with a temporarily lower price)
2) Transfer that bitcoin to, say, bitfinex (or another USDT exchange)
3) Sell that bitcoin for, say, ETH
4) Transfer that ETH back to the first exchange
5) Profit
Though I guess that would also flood the market and tank the ETH-BTC price as well (though I guess another arb could take advantage of that discrepancy as well).
Or are you talking about exchanges that only do USDT-BTC?
Wait, would it?
If you were an arb wouldn't you:
1) Buy bitcoin on a different exchange (with a temporarily lower price)
2) Transfer that bitcoin to, say, bitfinex (or another USDT exchange)
3) Sell that bitcoin for, say, ETH
4) Transfer that ETH back to the first exchange
5) Profit
Though I guess that would also flood the market and tank the ETH-BTC price as well (though I guess another arb could take advantage of that discrepancy as well).
Or are you talking about exchanges that only do USDT-BTC?