Over the past few hours, the cryptocurrency market has experienced significant fluctuations. The main factor contributing to this volatility is the reported investigation by US regulators into Tether, a major stablecoin issuer. Following this news, Bitcoin at one point fell by nearly 4%, dropping to $65,557.1, before narrowing the decline to about 2%. Other cryptocurrencies such as Ethereum and Dogecoin also faced sharp declines.
The market turmoil resulted in more than 132,000 liquidations in the past day, totaling losses of $368 million. The uproar is partly due to concerns about Tether’s compliance with sanctions and anti-money laundering laws. Tether, known for its USDT stablecoin pegged to the US dollar, has a market capitalization of approximately $120 billion, making it the third largest cryptocurrency in the world.
Additionally, reports have surfaced regarding potential changes to Tesla’s (TSLA, Financials) Bitcoin holdings. The company, which is associated with Elon Musk, allegedly transferred $765 million worth of Bitcoin to unknown wallets. There is speculation as to whether Tesla has sold its Bitcoin holdings, but this has not been confirmed.
Data from Arkham Intelligence revealed that in mid-October, 26 transactions from Tesla-affiliated wallets sent more than 11,500 Bitcoin to unidentified wallets. Tesla bought $1.5 billion worth of Bitcoin in 2021, making it a significant holder of Bitcoin, but it had previously sold some of its holdings. This recent activity calls into question Tesla’s current position on Bitcoin.
