Bitcoin (BTC) has seen a sharp decline, falling to the $60,000 mark in early October, as escalating tensions in the Middle East continue to heat up.
According to data from CoinMarketCap on the morning of Tuesday (Oct. 2, 2024), Bitcoin plummeted from $64,000 to $61,400, marking a 3% drop within just 24 hours. This decline has also impacted Bitcoin’s market capitalization, which fell by 3% to $1.2 trillion. As of the time of writing, the world’s largest cryptocurrency has slightly recovered, hovering around $61,700.
In the altcoin sector, Ether (ETH) plunged over 5% to $2,474, while BNB (BNB), Solana (SOL), and XRP (XRP) fell by 3%, 5%, and 2%, respectively.
Data from CoinGlass shows that this price drop has triggered mass liquidations in the derivatives market, with the majority of long-position traders getting liquidated. Total liquidations reached $449 million (Rp6.8 trillion) out of the $522.8 million (Rp7.9 trillion) in total crypto market liquidations.
Rising Tensions in the Middle East
The current downturn in the crypto market is primarily attributed to escalating tensions in the Middle East, reducing investor appetite for riskier assets.
On Tuesday morning, Iran launched a ballistic missile strike on Israel in retaliation for the assassination of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon by Israel. Similar events occurred in April and July 2024, which also triggered negative reactions in the crypto markets.
Additionally, a report from CNBC highlights that investors are closely watching the strike by members of the International Longshoremen’s Association on the East Coast and Gulf Coast of the United States, which could impact the U.S. economy depending on the duration of the strike.
Despite the current price drop, Bitcoin and the broader crypto market are expected to recover soon. October, also known as “Uptober” by traders, is historically a strong month for Bitcoin, with an average increase of nearly 23% since 2013, according to data from CoinGlass.
Follow our Twitter : https://x.com/safubit
Read : Crypto Investment Products Record Inflow of Rp18.2 Trillion in a Week (dinodapps.com)
