Bitcoin (BTC) price fell 2%, falling once again to the $65,500 support level, causing the broader crypto market to tumble. Following Israel’s attack on Iranian military targets, the altcoin pullback was even stronger, with Ethereum, BNB, SOL, and XRP each declining 3-6%. Geopolitical uncertainty is once again causing tremors across crypto markets and other risk-on assets.
Cryptocurrency market crash after Israel attack on Iran
Israel’s military launched “precision strikes” on Iranian military bases early Saturday morning amid rising tensions in the Middle East. According to media reports, several strong explosions were heard in the Iranian capital Tehran.
This development caused a crash in the crypto market and was enough to send Bitcoin and altcoins lower. However, market analysts believe this crash is likely to be short-lived. In early April of this year, during Israel’s first attack on Iran, the BTC price fell by more than 4% in one day, but quickly recovered in just four hours.
The impact was even greater in the altcoin space, where Ethereum (ETH) price fell another 3% to the $2,450 level, widening the weekly loss to more than 7.68%. Meanwhile, SOL price has fallen 6.3% to below $165 at the time of writing. Solana is up 11% over the past month, outperforming BTC and other altcoins.
Additionally, market analysts indicate that the ALT/BTC pair hit new lows earlier today. Cryptocurrency analyst Benjamin Cowen said altcoins could fall further in the coming months.
#ALT / #BTC The pair hit a new low for the cycle today.
The altcoin reckoning was never finished.
All that ended was that people patiently watched it unfold. pic.twitter.com/mRvzFPa0Iq
— Benjamin Cowen (@intocryptoverse) October 26, 2024
Tether investigation ruins Bitcoin and altcoins
Reports that the US Department of Justice has launched an investigation into Tether is another reason for today’s cryptocurrency market crash. However, the USDT stablecoin issuer clearly rejected this new series of allegations, calling them irresponsible reporting from the WSJ.
However, this report certainly hurt a bit as Tether (USDT) lost its USD peg and is trading 0.11% lower at $0.9983 at the time of writing. Tether (USDT) is the largest stablecoin with a market capitalization of $120 billion and has helped determine market movements over the past few years. Some market analysts believe Tether is too big to fail at this point. Hilary Allen, a law professor at American University who studies digital assets, said:
“For the crypto industry and large cryptocurrencies, I think Tether is too big to fail. “If Tether went to zero tomorrow, it would be disastrous for the crypto economy.”
Meanwhile, Arca Chief Investment Officer Jeff Dorman believes the market is no longer affected by these regulatory developments. He added:
“We won’t really know until next week whether this will have a long-term impact on the market, but given that the market is no longer affected by the regulatory tape bomb, we suspect there will be little long-term impact.”
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Bhushan Akolkar
Bhushan is a FinTech enthusiast with a deep understanding of financial markets. His interest in economics and finance led him to focus on the emerging blockchain technology and cryptocurrency market. He is passionate about continuous learning and stays motivated by sharing the knowledge he gains. In his free time, Bhushan enjoys reading thriller fiction novels and sometimes hones his cooking skills.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
