The Bitcoin and Ethereum price crashed in the last 24 hours, falling below $67,000 and $2,500, respectively. This price crash followed news of an alleged investigation into the issuer of USDT Tether. Meanwhile, the Israeli attack on Iran was also a contributing factor.
Why the price of Bitcoin and Ethereum dropped
Following this, the price of Bitcoin and Ethereum dropped below $67,000 and $2,500 Wall Street Journal report. that the United States Department of Justice (DOJ) has opened an investigation into the crypto company Tether. US Federal Investigations they are allegedly investigating the stablecoin issuer for possible violations of sanctions and anti-money laundering regulations.
Additionally, the report also mentioned that the US Treasury is considering imposing sanctions on Tether for doing business with individuals and groups on the US sanctions list. The price of Bitcoin and Ethereum fell as the news triggered a major sell-off in the cryptocurrency market due to fear and uncertainty among market participants.
Following the report Tether CEO Paolo Ardoino mentioned in Post X that there was no indication that they were under investigation and that the WSJ was simply “repeating old nonsense.” However, this statement was not enough to stop the bleeding, given the further decline in prices after his post.
Before the report Bitcoin price again wanted to reclaim the $68,000 price level as support while Ethereum price was well above the $2,500 level. However, the implications of this news, if true, were enough to derail these cryptocurrencies’ momentum as the flagship cryptocurrency immediately fell below $67,000.
Indeed, the Tether under study could have a far-reaching impact on the cryptocurrency market, given that USDT, which is the largest stablecoin by market capitalization, is widely used throughout the market. It is worth mentioning that the stablecoin lost its peg to the dollar after the Department of Justice investigation report.
The Israeli attack on Iran also contributed
Israel’s retaliatory attack on Iran also contributed to the collapse of Bitcoin and Ethereum prices. Israel attacked Iran in retaliation Iran missile attack earlier this month. This attack took place in the early morning hours of October 26, just as the cryptocurrency 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 cryptocurrency market, given that it has once again fueled rising tensions in the Middle East and increased the possibility of regional war. Iran has yet to confirm whether Israel will strike back, but it looks like Bitcoin and Ethereum are reacting in anticipation of it.
For now, the price distribution of Bitcoin and Ethereum does not look good. Popular analyst Justin Bennett stated in X’s post that if the split pattern continues through the weekend, any rebound next week would be a sell.
This Bitcoin and Ethereum price crash comes less than two weeks before US presidential electionsand the cryptocurrency market was impatiently waiting for Donald Trump’s victory. Trump’s victory is considered bullish for the cryptocurrency market as the former US president has publicly declared his support for cryptocurrencies.
Featured image created with Dall.E, chart from Tradingview.com
