THE Bitcoin and Ethereum prices have collapsed over the past 24 hours, falling below $67,000 and $2,500, respectively. This price collapse came following the announcement of an alleged investigation into USDT issuer Tether. At the same time, the Israeli attack on Iran also contributed to this situation.
Why the price of Bitcoin and Ethereum collapsed
Bitcoin and Ethereum price fell below $67,000 and $2,500 following the Wall Street Journal Report that the US Department of Justice (DOJ) had launched an investigation into crypto company Tether. US federal investigations are reportedly investigating the stablecoin issuer for possible violations of sanctions and anti-money laundering rules.
Furthermore, the report also mentions that the US Treasury is considering sanctioning Tether for doing business with individuals and groups on the US sanctions list. Bitcoin and Ethereum prices fell as this news sparked a sell-off in the crypto market due to fear and uncertainty among market participants.
Following the report, Paolo Ardoino, CEO of Tether mentioned in a Message that there was no indication that they were under investigation and that the WSJ was “simply regurgitating old noise.” However, this statement was not enough to stop the bleeding, given that prices fell further after his post.
Before the report, the Bitcoin Price was once again looking to reclaim the $68,000 price level as support while Ethereum price was comfortably above the $2,500 level. However, the implications of the news, if true, were enough to derail the momentum of these cryptocurrencies, as the flagship crypto immediately slipped below $67,000.
Indeed, the studied Tether could have a considerable impact on the crypto market, given that USDT, which is the largest stablecoin in terms of market capitalization, is widely used in the market. It is worth mentioning that the stablecoin lost its dollar peg following the DOJ investigation report.
The Israeli attack on Iran also contributed.
Israel’s retaliation against Iran also contributed to the fall in Bitcoin and Ethereum prices. Israel attacked Iran in retaliation Iran’s missile attack earlier this month. This attack took place in the early hours of October 26, just as the crypto market was trying to rebound from the shockwave of the alleged Tether investigation.
As expected, the Israeli attack on Iran also caused panic in the crypto market, considering that it once again fueled growing tensions in the Middle East and raised the possibility of a regional war. Iran has not yet confirmed whether it will retaliate against Israel, but Bitcoin and Ethereum appear to be reacting in anticipation of this.
For now, the price distribution of Bitcoin and Ethereum does not look good. Popular Analyst Justin Bennett said in an article
This drop in the prices of Bitcoin and Ethereum comes a little less than two weeks before the US presidential electionsthe crypto market eagerly awaiting Donald Trump’s victory. A Trump victory is considered optimistic for the cryptocurrency market, as the former US president has publicly stated his support for cryptocurrencies.
Featured image created with Dall.E, chart from Tradingview.com
