Original title: Crypto Rally Foiled by Report of DOJ Probe of Tether
Original author: Stephen Alpher
Original source: https://www.coindesk.com/
Compiled by: Mars Finance, Daisy
The cryptocurrency rally was hampered by reports of a U.S. Department of Justice investigation into Tether.
Bitcoin looked poised to take another shot at $70,000, but a Wall Street Journal report on a criminal investigation into stablecoin issuers sent prices tumbling.
Cryptocurrency prices gave up early gains and generally fell in the afternoon trading in the U.S. on Friday, affected by a report in the Wall Street Journal that the United States is investigating stablecoin issuer Tether for suspected violations of sanctions and anti-money laundering regulations. Stablecoins are cryptocurrencies whose value is usually pegged to another asset, usually the U.S. dollar. Tether (USDT), with a market value of more than $120 billion, is currently the most widely used stablecoin.
Cryptocurrency prices had risen before the news, with Bitcoin (BTC) approaching $69,000 and appearing ready to challenge $70,000 for the first time in three months later in the day or over the weekend. In the minutes after Tether's news was released, Bitcoin fell to as low as $66,500, down nearly 2% in 24 hours, before recovering slightly to $66,800. The broader market indicator CoinDesk 20 Index fell 2.3% in the same time frame.
Tether CTO Paolo Ardoino responded on X (original Twitter) that (The Wall Street Journal) was just "repeating old news." Ardoino said there was no indication that Tether was under investigation.
