The cryptocurrency market experienced significant volatility after news of a U.S. federal government investigation into cryptocurrency giant Tether surfaced. This caused significant price fluctuations, with Bitcoin plummeting by more than $3,000 at one point, hitting a low of $65,644, a drop of nearly 4%. Other cryptocurrencies such as Ethereum, Solana, and Dogecoin also suffered significant declines. Although prices have recovered slightly, the impact on the market remains significant.
Within 24 hours, about 140,000 traders faced liquidations, mostly from long positions, totaling nearly $400 million. The investigation stems from concerns that Tether may have violated sanctions and anti-money laundering regulations. According to reports, the investigation appears to be focused on whether the digital currency was used to finance illegal activities such as drug trafficking and terrorism.
As a result, virtual currency stocks in the US market suffered significant losses. Marathon Digital Holdings (MARA, Financials) fell more than 6%, Riot Platforms fell more than 5%, and Canaan Inc. fell 4.79%. Market analysts point out that the decline is partly due to the news, and the true impact of the investigation on the cryptocurrency market is still unclear.
Tether and its stablecoin, USDT, have come under scrutiny from U.S. regulators because they serve as an alternative to the dollar in areas where the U.S. currency is restricted and play an important role in the cryptocurrency space. There is. Tether has a market capitalization of approximately $120 billion, making it the third largest cryptocurrency and a major player in daily trading volume.
Looking at broader market trends, Trump’s political influence in support of crypto development stands in contrast to the regulatory-heavy approach of other politicians. The upward trend of crypto assets, particularly Bitcoin, has slowed due to the tightening financial environment and rising yields. The outlook remains uncertain as market expectations change depending on the political situation.
