Cryptocurrency prices experienced a reversal from early gains and are generally down in the U.S. afternoon on Friday. This shift follows a report from the Wall Street Journal indicating that the U.S. is investigating stablecoin provider Tether for potential breaches of sanctions and anti-money laundering regulations.
Stablecoins are a form of cryptocurrency that maintains its value by being tied to another asset, usually the U.S. dollar. Tether (USDT) is the most predominantly used stablecoin, with a market capitalization exceeding $120 billion.
Previously in the session, cryptocurrency prices were climbing, with bitcoin (BTC) approaching the $69,000 threshold and seemingly positioning itself for a potential late-day or weekend attempt to surpass $70,000 for the first time in the last three months. Following the news about Tether, bitcoin sharply dropped to around $66,500, representing a nearly 2% decline within 24 hours, although it slightly recovered to $66,800. The wider market indicator, the CoinDesk 20 Index, also saw a decrease of 2.3% during the same period.
Taking to X shortly after the news broke, Tether’s Chief Technology Officer, Paolo Ardoino, described the WSJ’s claims as “regurgitating old noise.” He stated that there is no evidence suggesting that Tether is being investigated.
At Crypto Dummies, we strive to demystify the complexities of the cryptocurrency world for enthusiasts of all levels. Through insightful articles, guides, and analysis, we cover topics ranging from blockchain technology to market trends and investment strategies. Stay informed and empowered with Crypto Dummies – your go-to source for accessible crypto knowledge.
