Crypto Market Faces Downturn Following Arrest of Samourai Wallet Founders by DOJ
Summary:
Following the arrest of Samourai Wallet creators by the US Department of Justice on money laundering charges, major cryptocurrencies like Bitcoin and Ether saw temporary price declines, triggering a liquidation of long positions. The dip adds to the volatility in the crypto market, already affected by halving and Middle East tensions. Despite negative impacts, investor sentiment as per the Fear and Greed Index remains high. The crypto community has expressed concerns over the apparent crackdown on cryptocurrency services by the U.S. government.
Bitcoin, Ether, and other significant altcoins experienced a quick downturn due to reports of the arrest of the creators of Samourai Wallet by the US Department of Justice (DOJ). The incident occurred amidst prevalent volatility following the halving and escalating tensions in the Middle East. As reported by Cointelegraph on April 24, Keonne Rodriguez, the CEO of the cryptocurrency wallet Samourai Wallet, and William Hill, the CTO, are each facing charges of conspiring to commit money laundering and operating an unauthorized money transaction enterprise.
Following the announcement from the DOJ, the price of Bitcoin fell by 3.6% within an hour, slipping below the key support level to reach $63,710. Subsequently, it recovered a bit to $64,546 based on data from CoinMarketCap.
At the same time, Ethereum saw a decrease of 2.51% and did not show signs of recovery, slipping further to $3,158. The larger altcoins too experienced some downfalls, with PEPE witnessing a 6.4% plunge, SHIB falling by 2.7%, and DOGE declining by 3.2% right after the DOJ news.
This wave of price reduction in the two leading cryptocurrencies led to mass liquidation of longstanding positions. As per CoinGlass data, Bitcoin saw the liquidation of long positions worth $33.08 million, Ethereum witnessed a $29.88 million wipeout, and roughly $23 million was liquidated from other parts of the crypto domain.
This downslide in the crypto market is also related to the escalating tension in the Middle East, with the Israeli military executing around 40 strikes tied to Hezbollah in Southern Lebanon, as reported by local sources, on April 24.
Rekt Capital, a well-known anonymous crypto trader, preempted his 456,400 X followers on April 24 about the next bull market not coming into play till late 2025, which is 546 days past the halving.
Despite great investor sentiment in the overall crypto market, there was a ripple. The Fear and Greed Index showed this week's greed score at 72, 15 points higher than the previous week.
Critics in the crypto realm expressed concerns over the arrests, suspecting another stringent crackdown on crypto by the US government. "Facing 25 years in prison for coding, the US is sending a stern message. Privacy in transactions will not be encouraged," stated crypto analyst Ryan Adams.
Fred Krueger expressed on the same day that the arrest "does not reflect well on Bitcoin at large." Crypto pundit, Luke Mikic, alerted his 26,800 X followers, stating that the "US Government's assault on Samourai wallet is more serious than most people perceive."
This piece does not promote investment advice or suggestions. Each trade move and investment carries risks and individuals must do their research before deciding.
Published At
4/25/2024 6:18:04 AM
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