- The crypto market briefly stumbled amid the arrest of Samourai Wallet founders by the U.S. Department of Justice
- Bitcoin’s price dropped by 3.6% and Ethereum declined by 2.51% following the announcement of the arrests
- The arrests triggered widespread liquidation of long positions across the crypto market
The arrest of Samourai Wallet’s founders led to a brief period of volatility in the crypto market. Prices of major cryptocurrencies like Bitcoin and Ethereum dipped but began recovering soon after.
Arrest of Samourai Wallet Founders
On April 24th, the US Department of Justice (DOJ) announced the arrest of Samourai Wallet’s CEO and CTO. Each founder faces one count of conspiracy to commit money laundering and one count of operating an unlicensed money transmitter.
Market Drops Across Top Cryptocurrencies
Within an hour of the announcement, Bitcoin’s price dropped 3.6% to $63,710 before recovering slightly to $64,546. Ethereum dropped 2.51% to $3,158 during the same period. Other major cryptocurrencies like Dogecoin and Shiba Inu also experienced brief declines over 20%.
Long Position Liquidations
The sudden drop in prices forced heavy liquidations of long positions across the market. Over $3 billion worth of Bitcoin longs were liquidated according to CoinGlass. Ethereum saw nearly $3 billion liquidated as well.
Backdrop of Geopolitical Tensions
The volatility also comes amid escalating tensions in the Middle East. On April 24th, Israel conducted strikes against Hezbollah targets in Lebanon.
Post-Halving Volatility Expected
Many in the crypto community had anticipated some volatility following Bitcoin’s recent halving event on April 20th. The next peak is predicted by some to come in late 2025.
Overall Investor Optimism
The fluctuations occurred despite positive investor sentiment more broadly. According to the Fear and Greed Index, crypto market greed rose to 72 this week, up 15 points from last week.
Critical Reactions to Arrest
Some in the crypto community criticized the arrests as an unjust crackdown by the government. They argued it could discourage privacy and innovation in the space.
Conclusion
The arrest of two major wallet developers triggered a wave of volatility across crypto markets. Prices dipped across assets but began recovering soon after the news broke. The volatility comes amid both geopolitical tensions and on the heels of Bitcoin’s halving event. However, investor optimism remains strong overall despite this brief turbulence.
