The Impact of Geopolitical Tensions on Cryptocurrency Stability

Amid ongoing geopolitical strains, with rising tension between Iran and the United States, the cryptocurrency market is experiencing a tough phase. The latest performance report from USDT, a major player in the stablecoin sector by market capitalization, sheds light on its current standing amidst these challenges. This report spans the fourth quarter of 2025, delivering pivotal insights into USDT’s position and broader market movements.

What Happened on October 10?

The events of October 10, 2025, proved to be a turning point for the crypto ecosystem. A wave of liquidations swept across the market, significantly impacting the growth trajectory of stablecoins. As investors rapidly exited, the value of stablecoins took a hit. From mid-October to early February 2026, the cumulative value of the entire cryptocurrency space plummeted by over a third. Interestingly, in this turbulent span, USDT managed to climb by 3.5%, while its closest competitors saw more drastic declines.

“USDt’s continuous growth stems from its diverse applications beyond the crypto market, clearly demonstrating users prefer USDt for wealth storage and transactions,” says Tether.

How Did Tether Sustain Its Growth?

Tether’s strategic measures played a crucial role in sustaining its market position. By the end of the fourth quarter, Tether’s total reserves grew by $11.7 billion, reaching a formidable $192.9 billion. The reserves saw significant contributions from increased Bitcoin holdings and a substantial gold reserve expansion. Moreover, Tether emerged as a notable holder of U.S. Treasury securities, outperforming several nations.

• Tether’s Bitcoin reserves climbed by 9,850 BTC, reaching an impressive 96,184 BTC.
• Tether increased its gold reserves by 21.9 metric tons, accumulating a total of 127.5 metric tons.
• Tether held $141.6 billion in U.S. Treasury securities, ranking them above Saudi Arabia and Germany.

Despite facing fear, uncertainty, and doubt (FUD) towards the year’s end, Tether experienced substantial user growth. Their report highlights a remarkable upswing in the user base by 35.2 million during the fourth quarter of 2025. This marks the eighth successive quarter where user growth surpassed the 30 million mark.

Furthermore, on-chain data reports show an increase in addresses containing USDT. The last quarter alone saw an addition of 14.7 million addresses, culminating in a total of 139.1 million, signifying a record quarterly surge.

These findings underscore Tether’s resilience and adaptability in a volatile market environment, reinforcing its position as a leading stablecoin and highlighting its appeal to a broad user base despite existing global uncertainties and market fluctuations.