After the US Department of Justice arrested the CEO and CTO of Samurai Wallet, the cryptocurrency market fell significantly, exacerbating volatility amid geopolitical tensions and the recent Bitcoin halving.
Bitcoin and Ether plummet after arrest of Samourai Wallet founder, worsening market volatility
According to Cointelegraph, Bitcoin, Ether, and major altcoins fell shortly after the U.S. Department of Justice (DOJ) arrested the founder of Samurai Wallet as tensions in the Middle East continue and post-halving volatility increases.
On April 24, sources said that Bitcoin wallet Samurai Wallet's CEO Keon Rodriguez and Chief Technology Officer William Hill were each charged with conspiracy to commit money laundering and conspiracy to operate an illegal money transfer business. It was announced that charges would be filed in each case.
Within an hour of the Justice Department's announcement, Bitcoin's price fell by 3.6%. The price fell below a key support level to $63,710 before rising slightly to $64,546, according to CoinMarketCap.
Ethereum, on the other hand, fell 2.51% during the same period but failed to recover and fell further to $3,158. The largest cryptocurrency also took a hit. PEPE fell 6.4% immediately after the announcement, Shiva fell 2.7%, and Dogecoin fell 3.2%.
Dramatic price declines in the top two cryptocurrencies by market capitalization have led to large-scale liquidations of long-term holdings.
According to CoinGlass statistics, in the past 12 hours, $33.08 million long positions were liquidated in Bitcoin, $29.88 million in Ethereum, and approximately $23 million in long positions in the rest of the crypto market.
The downturn in the cryptocurrency market coincides with rising geopolitical tensions in the Middle East. According to local estimates, Israeli forces attacked around 40 Hezbollah-linked targets in southern Lebanon on April 24.
The crypto industry was already bracing for short-term disruption following the April 20 Bitcoin halving event, which occurred just days earlier.
Crypto market sentiment remains high despite arrests, with analysts predicting long-term market recovery
On April 24, pseudonymous crypto trader Recto Capital told his 456,400 X followers that the next bull market top won't occur until late 2025, or 546 days after the halving.
This change occurred despite the overall strong investor mood in the crypto sector.
The Fear and Greed Index, which monitors crypto market sentiment, increased its Greed score to 72 this week, an increase of 15 points from the previous week. The crypto community condemned the new arrests, claiming it was another attempt by the US government to crack down on cryptocurrencies.
“These developers could face up to 25 years in prison for writing the code. The US is sending a message. No transactions will be private,” says crypto analyst Ryan Adams said in an April 24 post.
On the same day, Fred Krueger wrote in a post on X that the arrest was “not a good thing for Bitcoin as a whole.”
“The attack on Samurai Wallet by the US government is bigger than most people think,” crypto journalist Luke Mikic told his 26,800 X followers.
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