The Bitcoin and crypto market suddenly crashed due to market unrest surrounding Tether research

Bitcoin (BTC) has risen significantly in recent weeks, but this afternoon was hit with a rapid drop of 2.3% in just 10 minutes. Other crypto projects also went into the red, such as Ethereum (ETH), which fell 2.4% over the same period.

Although the price of many cryptocurrencies seems to be recovering, the question remains what caused this sudden drop. The suspect? A report from the Wall Street Journal about American research on Tether (USDT).

Research on Tether that could be a source of volatility in the market

According to the Wall Street Journal, the US federal government is investigating whether Tether violated anti-money laundering regulations and international sanctions. This news has a big impact on the crypto market because USDT is the largest stablecoin with a market capitalization of over $120 billion, placing it in third place behind Ethereum and Bitcoin.

Tether’s CEO denies allegations

Tether CEO Paolo Ardoino denied the allegations of an ongoing investigation and said there is no evidence that Tether is on fire. He accused the Wall Street Journal of repeating old information. At this time, it is unclear whether an investigation is ongoing and what impact it may have on the future of Tether and the stable in general. However, if true, this could have a big impact.

What else can we expect?

How the market will develop in the near future is still uncertain. However, the period ahead promises to be critical for investors. A new jobs report will be released next week publishedfollowed by an important central bank meeting where the interest rate decision will be announced. Finally, the American elections are also taking place.

The jobs report provides insight into the health of the labor market, highlighting low unemployment, high job vacancies and rising wages. A positive result could boost confidence in the economy, and the interest rate decision and election results could further influence the crypto and stock markets.

So the coming weeks could have a disruptive effect on the markets. Let’s see what the future brings!