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

Crypto prices took some support from improved risk appetite after Israel's attack on Iran was less severe than feared.

Bitcoin rose slightly on Monday, but its advance towards record highs was capped by a report that the U.S. government was investigating stablecoin giant Tether.

Crypto prices edged higher as Israel's attack on Iran was less severe than anticipated. Sentiment was also boosted by Hong Kong proposing a tax break for crypto and digital assets.

However, uncertainty over the U.S. election and interest rates weighed on crypto markets, keeping most major currencies trading within a narrow range.

Bitcoin rose 0.9% to $67,719.5 by 01:06 ET (05:06 GMT).

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 investigating Tether over potential money laundering and sanction violations.

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

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

Hong Kong proposes crypto tax break

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

While officials did not disclose 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 crypto 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%.