As a seasoned crypto investor with over a decade of experience navigating the volatile world of digital assets, I can’t help but feel a sense of deja vu as I watch the market crash following Israel’s attack on Iran and the ongoing Tether investigation.
In a widespread downturn, Bitcoin‘s price dropped by 2%, plunging back to the $65,500 support level. Meanwhile, following Israel’s military actions against Iran, alternative cryptocurrencies like Ethereum, BNB, SOL, and XRP are experiencing even more significant declines of between 3% and 6%. The crypto market, along with other risk-taking assets, is feeling the effects of renewed geopolitical uncertainties.
Crypto Market Crash Following Israel’s Attack on Iran
On the peaceful break of Saturday mornings, Israel’s armed forces conducted targeted attacks on Iranian military facilities, intensifying the ongoing regional conflicts. According to news outlets, powerful blasts echoed through Tehran, Iran’s capital city.
This significant event led to a sudden drop in the cryptocurrency market, pushing Bitcoin and other digital currencies downward. Nevertheless, financial experts predict that this downturn might be temporary. Interestingly, earlier this year, in April, when Israel launched its initial attack on Iran, Bitcoin’s value dropped by over 4% within a day. However, it swiftly rebounded just four hours later.
The effect in the altcoin market is particularly noticeable, as Ethereum (ETH) dips by another 3%, reaching around $2450, and accumulating weekly losses exceeding 7.68%. Conversely, Solana (SOL) has dropped by 6.3% currently, sinking below $165. Despite this recent downturn, Solana has demonstrated impressive performance against Bitcoin (BTC) and other altcoins, posting a 11% increase over the past month.
Additionally, it’s been demonstrated by market experts that the ALT/BTC rate reached a fresh bottom earlier today. Cryptocurrency expert Benjamin Cowen suggests that there could be potential for altcoins to decline even more over the next few months.
#ALT / #BTC pairs put in a new low for the cycle today.
The altcoin reckoning never ended.
The only thing that ended was peoples’ patience to watch it play out.
— Benjamin Cowen (@intocryptoverse) October 26, 2024
Tether Investigation Plays Spoilsport for Bitcoin and Altcoins
The U.S. Department of Justice starting an investigation into Tether is one possible cause for today’s cryptocurrency market downturn. Yet, Tether, the company responsible for USDT stablecoin, has flatly denied these new accusations, labeling the report from the Wall Street Journal as reckless journalism.
Yet, the report seems to have had an impact, as Tether (USDT) has slightly deviated from its dollar peg and is currently trading 0.11% lower at $0.9983. Tether (USDT), the leading stablecoin with a market cap of around $120 billion, has significantly influenced market trends for some time now. Some financial experts argue that Tether’s size makes it virtually untouchable in its current state. Hilary Allen, a digital assets expert and law professor at American University, shares this view.
“For the crypto industry and crypto writ large, I do think Tether is too big to fail. “If Tether were to go to zero tomorrow, it would be disastrous for the crypto economy.”
Conversely, Jeff Dorman, as the Chief Investment Officer at Arca, opines that the current market seems to be resilient or unresponsive to regulatory changes. Additionally, he stated:
It’s uncertain if this will have a lasting impact on the market until we assess next week, but my prediction leans towards minimal long-term influence. This is because the market seems resilient and less affected by regulatory announcements.
Read More
- ENA PREDICTION. ENA cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- USD ZAR PREDICTION
- LUNC PREDICTION. LUNC cryptocurrency
- WIF PREDICTION. WIF cryptocurrency
- HEC PREDICTION. HEC cryptocurrency
- USD COP PREDICTION
- HYDRA PREDICTION. HYDRA cryptocurrency
2024-10-26 07:24