Bitcoin Stalls Under $70K on Report of DOJ Probing Tether

The world's biggest cryptocurrency stalled over the weekend as a push towards $70,000 was stalled by a Wall Street Journal report that the U.S. Department of Justice was probing Tether over potential money laundering and sanction violations.

Bitcoin rose on Monday from recent lows, helped by a report that Israel’s attack on Iran was less severe than anticipated and Hong Kong's proposal for a tax break on crypto. However, broader crypto price action was muted amid uncertainty over U.S. election and interest rate concerns.

Crypto prices took some support from improved risk appetite after Israel’s attack on Iran was less severe than feared. Sentiment was also helped by Hong Kong proposing a tax break for crypto and digital assets.

But uncertainty over the U.S. election and interest rates still weighed on crypto markets, keeping most major currencies trading in a tight range.

Bitcoin rose 0.9% to $67,719.5 by 01:06 ET (05:06 GMT). It slipped to as low as $64,354 on Sunday.

Bitcoin stalls under $70k on report of DOJ probing Tether

The world’s biggest cryptocurrency stalled over the weekend as a push towards $70,000 was halted by a Wall Street Journal report that the U.S. Department of Justice was probing Tether over potential money laundering and sanction violations.

Tether is by far the biggest stablecoin issuer, and plays a key role in global crypto trade with its USDT token, which is treated as a dollar analog in crypto markets. Any regulatory action against the firm presents major headwinds for crypto markets.

While Tether denied any knowledge of the probe, fears of regulatory action weighed on crypto prices, dragging Bitcoin away from $70,000 over the weekend.

Hong Kong proposes crypto tax break

Hong Kong officials on Monday proposed regulatory guidelines for using artificial intelligence, which also include potential tax breaks for digital assets.

While officials did not reveal specific details on the planned policies, they said that the policies would be implemented by the end of the year.

Hong Kong still allows crypto trade, even after China banned the industry in 2021. The city had earlier this year approved spot crypto exchange-traded funds, although their launch had little bearing on broader crypto markets.

Crypto price today: altcoins tread water

Broader crypto prices moved little on Monday, with major altcoins moving in a flat-to-low range after clocking losses through last week.

World no.2 cryptocurrency Ether was flat at $2,482.04, while SOL rose 0.6% after outpacing its peers last week.

ADA, MATIC and XRP fell between 0.4% and 2%, while among meme tokens, DOGE rose 3.9%.