Bitcoin's recent surge toward $70,000 was interrupted by news of a U.S. Department of Justice probe into Tether, the largest stablecoin issuer, for alleged violations of sanctions and anti-money laundering regulations. Following this report, bitcoin's price dropped from nearly $69,000 to around $66,500, marking a nearly 2% decline. This setback occurred during a session where cryptocurrency prices had initially risen, buoyed by robust market optimism. Tether, which boasts a market cap exceeding $120 billion, is integral to the cryptocurrency ecosystem. Despite the probe’s revelation, Tether's Chief Technology Officer Paolo Ardoino dismissed the report as outdated, asserting that there is no current investigation against Tether. The overall cryptocurrency market reflected this downturn, with the CoinDesk 20 Index falling by 2.3%. The situation raises questions about market stability amid regulatory scrutiny, particularly for the significant role stablecoins play in the crypto economy.

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