There was a general collapse in the crypto market. Bitcoin 
$67,091The price of is down 2% and retreated to the $65,500 support levels. Further declines were observed in altcoins following Israel’s attacks on Iran’s military targets. This event has again created uncertainty in the crypto market and other risk assets.
Impact of Israel’s Attack on Iran on the Crypto Market
Tensions in the Middle East increased as Israel launched “decisive attacks” against Iran’s military bases. According to media reports, several powerful explosions were heard in Tehran, the capital of Iran. This development caused panic in the crypto market, causing investors to sell.
Impact of Tether Investigation on Bitcoin and Altcoins
The investigation launched by the US Department of Justice against Tether was another reason for the decline in the crypto market. The issuer of the USDT stablecoin dismissed these new allegations with irresponsible reporting. However, the report caused Tether to lose parity to the USD, with USDT trading at $0.9983, down 0.11% at press time. Commenting on the subject, Benjamin Cowen stated the following:
“#ALT/#BTC reached a new low for the cycle today. Altcoin calculation never ends. “People just ran out of patience.”
This pressure on Bitcoin and altcoins attracted the attention of market analysts. Benjamin Cowen stated that altcoins are likely to fall further in the coming months. Although Bitcoin has recovered quickly during previous attacks, altcoins appear to be more fragile. In addition, American University law professor Hilary Allen made the following comment on the subject:
“For the crypto industry and digital assets in general, it is impossible for Tether to go bankrupt. “If Tether goes to zero tomorrow, it will be catastrophic for the crypto economy.”
On the other hand, Jeff Dorman, Arca’s chief investment officer, stated that the market has become immune to such regulatory developments. “We will know for sure next week whether this situation has a long-term impact on the market, but given that the market has become immune to regulatory blows, I predict it will have little long-term impact.” he said.
Recent developments show that fluctuations in the crypto market may continue. Investors continue to be cautious in the face of both geopolitical risks and regulatory news. In this environment of uncertainty, it is important for market participants to be careful.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
