Cryptocurrencies such as BTC and ETH experienced significant declines, impacting the overall sentiment in the crypto market.
The U.S. federal government has launched an investigation into Tether, a major issuer of the stablecoin USDT.
The global crypto markets had a turbulent day as negative sentiments swept through the trading floor.
Bitcoin (BTC) initially dropped to around $65,500 but later recovered slightly to about $67,085. Ethereum (ETH) also fell, declining over 7% from $2,563 to approximately $2,471. Solana (SOL) faced challenges as well, dropping nearly 10% to around $160, while XRP saw a decrease of about 7% and settled at $0.514.
The overall cryptocurrency market capitalization took a hit, decreasing by 2.48% to reach $2.28 trillion. Interestingly, despite the downturn, the total market volume surged by 43%, now standing at $105.01 billion, indicating a flurry of trading activity despite the falling prices.
One of the main reasons for the tense atmosphere in the market is the ongoing investigation into Tether, a prominent issuer of the stablecoin USDT. The Wall Street Journal reported on October 25 that U.S. authorities are scrutinizing Tether, causing concern among investors. However, Tether’s CEO, Paolo Ardoino, dismissed the news as “old noise,” but the uncertainty has undoubtedly unsettled the market.
There has been mixed performance among memecoins and altcoins. 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 ranging from 8% to 12%.
On a more positive note, Goatseus Maximus (GOAT) stood out as a top gainer, surging by 30% and trading at $0.8551. In contrast, Notcoin (NOT) experienced an 11% drop, along with Celestia (TIA), which fell by 10% to $5.37.
Additionally, the cryptocurrency markets are highly sensitive to geopolitical risks. 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 crypto news today, Emory University has invested over $15 million in the Grayscale Bitcoin Mini ETF.