The Bitcoin and Ethereum price have crashed in the past 24 hours, falling below $67,000 and $2,500 respectively. This price crash came after news of the alleged investigation into the USDT issuer Tether. Meanwhile, the Israeli attack on Iran also played a role.
Why the price of Bitcoin and Ethereum crashed
The price of Bitcoin and Ethereum crashed below $67,000 and $2,500 The Wall Street Journal report that the US Department of Justice (DOJ) had launched an investigation into the crypto company Tether. US federal investigations would investigate the stablecoin issuer for possible violations of sanctions and anti-money laundering rules.
Additionally, the report also stated that the US Treasury Department is considering sanctioning Tether for doing business with individuals and groups on the US sanctions list. The price of Bitcoin and Ethereum fell as this news led to a major sell-off in the crypto market due to fear and uncertainty among market participants.
Following the report, Tether CEO Paolo Ardoino mentioned in a X message that there was no indication that they were under investigation and that the WSJ was simply “regurgitating old noise.” However, that statement wasn’t enough to stem the bleeding as prices continued to fall after his post.
Prior to the report, the Bitcoin price was once again looking at 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 this cryptocurrency’s momentum, as the flagship crypto immediately fell below $67,000.
The investigated Tether could have far-reaching consequences for the crypto market, as USDT, which is the largest stablecoin by market capitalization, is widely used in the market. It is worth noting that the stablecoin lost its dollar peg after the report of the DOJ investigation.
The Israeli attack on Iran also contributed to this
Israel’s retaliatory attack on Iran also contributed to the Bitcoin and Ethereum price crash. Israel has attacked Iran in retaliation for this Iranian missile attack earlier this month. This attack took place in the early hours of October 26, just as the crypto market was trying to recover from the shockwave of the alleged Tether investigation.
As expected, Israel’s attack on Iran also caused panic in the crypto market as it has reignited rising tensions in the Middle East and raised the possibility of a regional war. Iran has yet to confirm whether it will strike back against Israel, but Bitcoin and Ethereum appear to be anticipating that happening.
For now, the Bitcoin and Ethereum price breakdown doesn’t look good. Popular analyst Justin Bennett stated in an X post that if the breakdown pattern continues through the weekend, any bounces would be for sale next week.
This Bitcoin and Ethereum price crash comes just under two weeks before the US presidential electionwith the crypto market eagerly awaiting Donald Trump’s victory. A Trump victory is considered bullish for the crypto market as the former US president has publicly expressed his support for cryptocurrencies.
Featured image created with Dall.E, chart from Tradingview.com