Cryptocurrency Market Sees Significant Decline as U.S. Government Investigates Tether
The crypto market experienced a tumultuous day as negative sentiments swept through the trading floor, causing major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) to see significant drops. BTC initially dipped to around $65,500 but later rebounded slightly to about $67,085. Meanwhile, ETH fell to approximately $2,471 from $2,563, marking a decline of over 7%. Other coins, such as Solana (SOL) and XRP, also faced challenges, dropping nearly 10% and 7% respectively.
As a result of these declines, the overall cryptocurrency market capitalization decreased by 2.48% to reach $2.28 trillion. However, despite the downturn, total market volume surged by 43%, now standing at $105.01 billion, indicating a flurry of trading activity despite the falling prices.
The tense atmosphere in the market can be attributed to the ongoing investigation into Tether, a major issuer of the stablecoin USDT. U.S. authorities are scrutinizing Tether, causing concern among investors. Tether’s CEO, Paolo Ardoino, dismissed the news as “old noise,” but the uncertainty surrounding the investigation has undoubtedly rattled the market.
In the memecoin arena, Dogecoin (DOGE) and Shiba Inu (SHIB) also faced declines, with DOGE falling by 4.59% and SHIB by 6.17%. Other popular tokens like PEPE, WIF, and BONK witnessed losses of 8% to 12%. However, there were some positive performances as well. Goatseus Maximus (GOAT) stood out as a top gainer, surging by 30% to trade at $0.8551. On the other hand, Notcoin (NOT) faced an 11% drop, along with Celestia (TIA), which fell by 10% to $5.37.
Geopolitical risks also play a significant role in the cryptocurrency markets. Israel’s recent attack on Iran has contributed to a decline in prices. Investors often react swiftly to such events, leading to heightened volatility in digital asset prices.
In other news, Emory University has made a significant investment of over $15 million in the Grayscale Bitcoin Mini ETF, further signaling the growing interest of institutional investors in the cryptocurrency space.
