As a seasoned crypto investor with over a decade of experience in this volatile market, I have learned to navigate through its ups and downs with a steady hand. The recent drop in Bitcoin’s price on the first day of October has been a familiar sight, but it doesn’t shake my conviction in its long-term potential.
As a researcher, I observed that Bitcoin (BTC) ended the first day of October on a bearish note, plunging approximately 3% to around $61,729 during the mid-London session yesterday. This decline has pushed the cryptocurrency below its 200-day Moving Average (MA), indicating that bears might be regaining control, despite a bullish recovery in September. The daily trading volume stands at approximately $0.00 billion, and the market cap is estimated to be $0.00 trillion.
In light of Bitcoin’s significant drop over the past day, it seems the altcoin market mirrored this trend, causing a 5.4% decrease in the overall crypto market capitalization. This downward spiral resulted in approximately $526 million being wiped out from the leveraged cryptocurrency market, with a staggering 85% of these losses attributed to long-term traders.
Top Reasons Why Bitcoin Price Dumped
In the previous 24 hours, the cryptocurrency market experienced significant declines, likely due to Iran’s unprecedented missile attacks against Israel using long-range weapons. Although Iran has stated that these attacks are concluded from their end unless provoked further by Israeli government action, coupled with U.S. involvement, investors have been shifting their assets towards perceived global safe-havens, chief among them Gold.
Investors are literally selling #Bitcoin to buy #gold as geopolitical tensions spike.
— jeroen blokland (@jsblokland) October 1, 2024
Based on the most recent market figures, US spot Bitcoin Exchange-Traded Funds (ETFs) experienced their largest cash outflows since early September yesterday, totaling approximately $242 million. The greatest outflow of cash on Tuesday was from Fidelity’s Bitcoin ETF, amounting to around $144.67 million, with ARK 21Shares Bitcoin ETF (ARKB) following closely behind at about $84 million in outflows.
Despite this, BlackRock’s IBIT persisted in its Bitcoin buying spree, adding approximately $40.84 million in cash. As per recent market information, over 5,900 Bitcoins, valued at over $365 million, were deposited into the Binance Holdings exchange in just the last day.
It’s worth mentioning that many investors are using the recent drop in Bitcoin prices as an opportunity to buy more coins, a trend that is evident with over 61% of traders on Binance exchange opening long positions on Bitcoin within the last 24 hours.
Bigger Market Picture
BTC price has been trapped in a bearish consolidation since March, despite the notable accumulation from the US spot BTC ETFs. According to a popular analyst Peter Brandt, Bitcoin price should be considered in a macro falling trend unless it consistently closes above $71k in the near term.
In the past few days, Bitcoin’s surge has not broken the pattern of successively lower highs and lower lows over the last seven months. For us to say that the trend initiated from November 2022 is still active, we need a closing price above 71,000 and a new all-time high (ATH) as confirmation.
— Peter Brandt (@PeterLBrandt) October 2, 2024
Despite Bitcoin’s prices not keeping pace with gold’s surge in the past period, financial experts anticipate a significant surge in the cryptocurrency market soon. Additionally, hints from the U.S. Federal Reserve suggest potential reductions in interest rates as inflation decreases steadily alongside a low unemployment rate.
Moreover, the 2024 U.S. general election could significantly impact the continuation of the cryptocurrency market’s growth phase, with predictions pointing towards an extension into 2025.
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2024-10-02 12:18