Bitcoin Keeps Hesitating at $70K

Bitcoin broke out of the descending channel early last week, as BTC climbed above $65,000, but buyers continue to fail at $70,000. Buyers have tried to approach this major level twice this week, but both times Bitcoin was rejected and BTC returned lower to the top of the previous range.

Bitcoin Price Trends and Market Strength

Though Bitcoin did not reach $70,000 this week, its recent price action highlights both resilience and cautious investor sentiment. Despite fluctuations, Bitcoin has shown strong momentum in response to several global developments. A slowing global economy, geopolitical uncertainties, speculation about a BRICS currency challenging the U.S. dollar as the global reserve, and potential election-related instability in the U.S. all contribute to Bitcoin’s current market resilience. Over the past two months, Bitcoin’s growth has been bolstered by increased institutional adoption and improved network fundamentals. Major international asset managers hold approximately $60 billion across regulated exchange-traded funds (ETFs), and a few control around $65 billion in ETF assets globally. However, recent reports about an FBI investigation into Tether have sparked a sharp price drop, suggesting potential risks for the broader crypto ecosystem.

Bitcoin Chart Daily – The Top Line of the Channel Has Turned into Support Now

Regulatory Scrutiny on Tether

Tether is now under investigation by the U.S. Department of Justice and the Treasury Department for possible sanctions violations and alleged illicit activities. U.S. attorneys in Manhattan are leading a criminal probe into possible links to terrorism, drug trafficking, and hacking. The Treasury Department is also reportedly considering sanctions against Tether, which handles a daily trading volume of $190 billion.

Recently, Tether blocked 1,850 wallets worth $114 million amid an investigation into potential sanction-evasion cases involving stablecoins. The company asserts its full cooperation with authorities and denies the allegations against it. Approximately $80 billion of Tether’s assets are managed by Cantor Fitzgerald, following a series of fines and settlements, including a $61 million regulatory penalty and a $4.3 billion settlement involving Binance.

Tether’s Response to Speculation

A Tether representative later released a statement condemning the rumors, particularly those published by the Wall Street Journal, as reckless given the lack of verified sources or official confirmations. Tether maintains that it is unaware of any such investigations and describes the speculations as unfounded. The representative further criticized the article for overlooking Tether’s ongoing collaborations with law enforcement to counteract criminal exploitation of Tether and other cryptocurrencies. Tether asserts that its record with regulators demonstrates its commitment to compliance and transparency.

Bitcoin Live Chart