Bitcoin, Ether, and Altcoins Tumble Following Telegram Co-Founder’s Arrest
The cryptocurrencies like Bitcoin, Ether, and numerous altcoins. faced significant turbulence over the weekend, as reports emerged of Telegram co-founder Pavel Durov’s arrest in France. This development sent shockwaves through the crypto community, leading to widespread losses across various digital assets, including Bitcoin, Ether, and numerous altcoins.
The Arrest of Pavel Durov and Its Immediate Impact on the Crypto Market
Pavel Durov, a prominent figure in the tech world, co-founded Telegram in 2013 and later developed the TON blockchain in 2018. His arrest in France has raised concerns not only within the Telegram community but also among leaders in the global Web3 and cryptocurrency circles. The arrest has led to a sharp decline in the prices of several major cryptocurrencies, reflecting the market’s immediate reaction to the news.
Bitcoin, the world’s largest cryptocurrency, experienced a nearly two percent drop in value across both national and international exchanges. As of Monday, August 26, Bitcoin was trading at $66,428 (approximately Rs. 55.6 lakh) on Indian exchanges and $64,077 (approximately Rs. 53.6 lakh) internationally. This decline follows the news of Durov’s arrest and has contributed to the overall market volatility.
Telegram CEO Pavel Durov Shocks the World: Over 100 Biological Children Through Sperm Donation.
Broader Market Reactions: Losses Across the Board
The impact of Durov’s arrest was not limited to Bitcoin alone. Ether, the second-largest cryptocurrency by market capitalization, also reflected similar losses. At the time of writing, Ether was trading at $2,877 (approximately Rs. 2.41 lakh) on Indian exchanges and $2,745 (approximately Rs. 2.30 lakh) on international exchanges. The market downturn was evident across multiple altcoins, including Solana, Dogecoin, Cardano, Avalanche, Shiba Inu, and Polkadot, all of which joined Bitcoin and Ether on the loss-making side of the price chart.
Particularly hard-hit was Toncoin, a cryptocurrency developed by Telegram. Following Durov’s arrest, Toncoin reportedly lost over $3 billion (approximately Rs. 25,146 crore) in market value. This dramatic drop underscores the close ties between the fortunes of certain cryptocurrencies and the key figures or companies associated with them.
Notably, the play-to-earn coin NOT also suffered a significant loss, plummeting 20 percent in value and dropping below one cent (approximately Rs. 0.007958). These losses highlight the fragile nature of many cryptocurrencies, which can be heavily influenced by external events and news related to their founders or associated projects.
Market Analysts Weigh In: A Potential Recovery for Bitcoin?
Despite the recent downturn, some market analysts remain cautiously optimistic about Bitcoin’s prospects. Edul Patel, CEO of Mudrex, noted that while Bitcoin has faced minor losses and market volatility, it still has the potential to reach the $69,000 (approximately Rs. 57.8 lakh) mark. This optimism is partly fueled by Robert F. Kennedy Jr.’s recent endorsement of Donald Trump in the U.S., which included a pledge to adopt a crypto-friendly stance.
Avinash Shekhar, Co-founder & CEO of Pi42, echoed this sentiment, pointing to the resilience demonstrated by Bitcoin ETFs in recent weeks. According to Shekhar, Bitcoin ETFs have rebounded strongly from early August losses, attracting over $500 million (approximately Rs. 4,191 crore) in investments. This influx of capital, particularly into prominent funds like BlackRock’s IBIT, further cements Bitcoin’s status as “digital gold,” continuing to capture the confidence of both retail and institutional investors.
“This impressive streak underscores Bitcoin’s established role as a trusted digital asset, drawing sustained investor interest even amidst market fluctuations. The influx of capital, particularly into industry giants like BlackRock’s IBIT, further solidifies Bitcoin’s status as digital gold, capturing the confidence of both retail and institutional investors,” Shekhar noted.
Ethereum and Other Cryptocurrencies: An Uncertain Path Forward
While Bitcoin continues to be viewed as a safe haven in the cryptocurrency market, Ethereum’s path to similar market trust remains uncertain. According to Shekhar, Ethereum still needs broader adoption and greater investor confidence to achieve the same level of trust that Bitcoin enjoys. The recent market fluctuations have highlighted this disparity, with Ethereum experiencing losses similar to Bitcoin but without the same level of investor reassurance.
The overall cryptocurrency market cap slipped by 0.40 percent in the last 24 hours, bringing the total valuation to $2.25 trillion (approximately Rs. 1,88,64,528 crore), as per CoinMarketCap. This downturn was reflected across most altcoins, with Polygon, Uniswap, Cronos, Cosmos, and Bitcoin SV all experiencing price drops.
Conclusion
The arrest of Telegram co-founder Pavel Durov has had a profound impact on the cryptocurrency market, triggering losses across major digital assets like Bitcoin and Ether. While some analysts see potential for a recovery, particularly for Bitcoin, the broader market remains volatile. The incident serves as a reminder of the interconnectedness of the crypto market and the influence that key figures and external events can have on digital assets. As the situation continues to develop, investors and market watchers will be closely monitoring how these dynamics unfold in the days to come.