- Bitcoin price dropped last Friday following Tether investigation reports.
- Tether CEO denied reports linking his firm to government scrutiny.
- Paolo Ardoino’s rebuttal reignited Bitcoin’s upward rally.
Bitcoin experienced significant volatility in the closing hours of Friday’s trading session, dropping nearly 5% in a few hours, after news broke about a U.S. government investigation into Tether, the company behind the stablecoin USDT. Tether’s CEO Paolo Ardoino has since denied the report, claiming there is no such government action targeted at his firm.
The initial report triggered a crypto market crash, with Bitcoin losing its daily gains and declining nearly 5% over a few hours. The pullback affected other top cryptocurrencies, as Ethereum declined over 7%, while Solana, the high-performing scalability altcoin, dropped below $160 after losing 10.21%.
Market Rebounds, But Skepticism Remains
The crypto market rebounded after Ardoino’s denial. Bitcoin bounced off support at $65,521 and trades for $67,046. That is a 2.5% gain from Friday evening’s low. Ethereum has recovered 3.8% from Friday’s loss, and Solana is up 6.21%. The pullback may have given investors a chance to re-enter the crypto market at better prices.
Despite the initial report and the rebuttal that followed, the crypto market appears skeptical as investors wait to confirm the authenticity of the investigation or its denial by Ardoino. A crypto analyst on the Crypto World YouTube podcast suspects that this development could turn out as another Tether FUD, considering the several failed events in the past that suggested a potential collapse of the stablecoin project.
Meanwhile, the analyst noted that Bitcoin remains above the $65,000 support, which he considers critical in the current crypto market trend. According to the analyst, trading above this level keeps Bitcoin in a positive long-term position. He sees Friday’s drop as a temporary pullback and expects the price to recover and continue upwards.
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