- Major cryptocurrencies, including BTC and ETH, saw significant drops, impacting sentiment in the crypto market.
- The U.S. federal government is investigating Tether, a major stablecoin issuer of USDT.
The global crypto markets experienced a turbulent day as negative sentiments swept through the trading floor. Bitcoin (BTC) initially dipped to around $65,500 but later rebounded slightly to about $67,085. In addition to Bitcoin’s struggles, Ethereum (ETH) fell to approximately $2,471 from $2,563, marking a decline of over 7%. Solana (SOL) also faced challenges, dropping nearly 10% to around $160, while XRP saw a decrease of about 7% to settle at $0.514.
The overall cryptocurrency market capitalization took a hit, decreasing by 2.48% to reach $2.28 trillion. Interestingly, despite the downturn, total market volume surged by 43%, now standing at $105.01 billion, indicating a flurry of trading activity despite the falling prices.
A key reason for the market’s tense atmosphere is the ongoing investigation into Tether, a prominent stablecoins issuer of USDT. The Wall Street Journal reported on October 25 that U.S. authorities are scrutinizing Tether, causing concern among investors. However, Tether’s CEO, Paolo Ardoino, dismissed the news as “old noise,” but the uncertainty has undoubtedly rattled the market.
Mixed Performance in Memecoins and Altcoins
In the memecoin arena, Dogecoin (DOGE) and Shiba Inu (SHIB) also faced declines, with DOGE falling by 4.59% and SHIB by 6.17%. Other popular tokens like PEPE, WIF, and BONK witnessed losses of 8% to 12%.
On a more positive note, Goatseus Maximus (GOAT) stood out as a top gainer, surging by 30% to trade at $0.8551. In contrast, Notcoin (NOT) faced an 11% drop, along with Celestia (TIA), which fell by 10% to $5.37.
Additionally, the cryptocurrency markets are highly sensitive to geopolitical risks. Israel’s recent attack on Iran has contributed to a decline in prices. Investors often react swiftly to such events, leading to heightened volatility in digital asset prices.
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