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In this early October, Bitcoin (BTC) experienced a significant price decline, dropping to $60,000 as Middle Eastern tensions intensified.
According to CoinMarketCap data from the morning of October 3, 2024, Bitcoin’s value decreased from $64,000 to $59,900, representing a 3% reduction over a few days. This downturn affected Bitcoin’s market capitalization as well, which diminished by 3% to $1.2 trillion. At the time of reporting, the leading cryptocurrency by market cap had rebounded to approximately $61,700.
Due to this drastic drop, the altcoin section was severely impacted by experiencing a much more drastic drop. On average the top alt coins fell 10-20% from their previous price.
The sudden price decline triggered widespread forced closures of positions in the derivatives market, primarily affecting traders with bullish outlooks. The crypto market as a whole saw $522.8 million worth of positions closed, with Bitcoin-related liquidations accounting for $449 million of that total. This indicates that the majority of the market impact was concentrated in Bitcoin trades.
Iran’s missile strikes on Israel made Rising Tensions in the Middle East
The cryptocurrency market is currently experiencing a downturn, largely attributed to escalating geopolitical tensions in the Middle East. This situation has led investors to shy away from assets perceived as higher risk.
A significant event occurred on the morning of October 3, 2024, when Iran launched a missile strike against Israel. This action was reportedly in response to Israel’s earlier operations resulting in the deaths of a Hezbollah leader and an Iranian military official in Lebanon. It’s worth noting that similar incidents in April and July of the same year also negatively impacted the crypto market.
Adding to the economic uncertainty, a labor dispute has emerged on the eastern and gulf coasts of the United States. Members of the International Longshoremen’s Association have initiated a strike, which could potentially disrupt the U.S. economy depending on its duration. This development has caught the attention of market watchers and investors alike.
Despite these challenges, many cryptocurrency enthusiasts remain optimistic about Bitcoin’s prospects. Historically, October has been a favorable month for the leading cryptocurrency, earning the nickname “Uptober” among traders. According to historical data from CoinGlass, Bitcoin has seen an average increase of nearly 23% during October since 2013.
This blend of geopolitical tensions, labor disputes, and historical market trends creates a complex landscape for cryptocurrency investors. While short-term volatility is evident, long-term believers in the crypto market are keeping a close eye on how these various factors will play out in the coming weeks.