Bitcoin briefly drops below $25,000, Tether’s stablecoin falls under its dollar peg

Cryptocurrency prices fell after the Federal Reserve meeting in June, with Bitcoin falling below $25,000 for the first time since March.

In Thursday, bitcoin was lower by more than 1% to $25,442.88, according to Coin Metrics. Earlier, it fell to $24,766.52. Ether fell more than 5% to $1,632.47.

Altcoins also fell. of Solana the token fell by 4%, Polygons fell by 10% and of Cardano lost %5.

And the pressure on the sales piled up I’m tying (USDT), which lost its link with the U.S. dollar on most exchanges on Thursday, falling as low as 99 cents in its biggest decline since November.

Bitcoin pared most of its losses in the afternoon as traders considered the possibility of BlackRock’s first U.S. spot bitcoin ETF, following a report by CoinDesk that the world’s largest asset manager is close to filing for a bitcoin ETF. The report was light on details and did not say how it would be exposed – whether by tracking bitcoin spot or bitcoin futures.

The initial cut began late Wednesday after the Federal Reserve wrapped up its June meeting and decided to leave interest rates unchanged for now, but said it had two more on the horizon later this year. Stocks were under pressure when the news broke, but cryptocurrency prices were flat at the close.

“This has less to do with the FOMC and more to do with weaker liquidity and weak sentiment,” said Michael Safai, managing partner at Dexterity Capital. “Given how thin trading volumes are right now, a sizeable (but not massive) sell order is enough to trigger a liquidation.”

“Traders are more likely to keep their money off the table in the midst of this regulatory backlash, especially when it comes to altcoins, so there won’t be a lot of new capital flowing into prices as easily,” he added.

Price action was tepid this week, while sentiment was negative after the Securities and Exchange Commission put a further chill on the industry when it sued Coinbase and Binance and questioned the regulatory status of several popular coins they deemed “valuable crypto-asset papers’. It was just the latest development in an ongoing crackdown by regulators that has weighed on the industry since the start of the year.

“Further confusion over the legitimacy of popular altcoins is keeping capital on the sidelines, and it will take a long stretch of good news or no news to get traders excited about the recovery,” Safai said. “Bitcoin prices will remain relatively bound between $25,000 and $27,000 until the next set of regulatory headlines tell us if we are headed for resolution or even more confusion.”