What is the Tether (USDT) beta?

The beta of Tether (USDT) is 0.99. This means that Tether is a low-beta asset, meaning that it is less volatile than the overall cryptocurrency market.

A beta of 1 indicates that an asset moves perfectly in line with the market, while a beta of -1 indicates that it moves perfectly in the opposite direction of the market. A beta of 0 indicates that there is no correlation between an asset and the market.

In the case of Tether, a beta of 0.99 means that it is very weakly correlated with the overall cryptocurrency market. This means that Tether is less volatile than the overall market, and it is less likely to experience large swings in price.

The low beta of Tether is due to the fact that it is often used as a stablecoin, meaning that it is designed to maintain a value of $1 USD. This means that Tether is less likely to be affected by the volatility of the cryptocurrency market.

The low beta of Tether can be a good thing for investors who are looking to reduce their risk. By holding Tether, investors can reduce their exposure to the volatility of the cryptocurrency market. However, the low beta can also be a bad thing for investors who are looking to make a profit. If the overall cryptocurrency market goes up, Tether is likely to go up as well, but not as much.

It is important to note that the beta of Tether can change over time. If the cryptocurrency market becomes more volatile, the beta of Tether may increase.