Crypto Market Plunges 6%, $556M Liquidated in 24 Hours

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As a seasoned crypto investor with battle-scarred fingers from the rollercoaster ride that is the crypto market, I must admit that the recent dip has left me feeling somewhat like a weathered sailor caught in an unexpected storm. The geopolitical tension between Iran and Israel is indeed a wild card that can send even the calmest of seas into turmoil.

Despite the high levels of excitement and optimism surrounding the crypto market as ‘Uptober’ approached, the recent events took everyone by surprise. The total value of cryptocurrencies has dropped by 6%, with over half a billion in crypto positions being liquidated.

Crypto Market Fairly Cautious, Here’s Why

It seems clear that the present market situation is being influenced significantly by the rising geopolitical conflicts, particularly between Iran and Israel. Recently, Iran targeted important Israeli sites with ballistic missiles. So far, Israel has not responded, but they have threatened a strong counteraction in the near future.

Due to this lingering sense of doubt, the value of cryptocurrencies has plummeted by approximately 6%, dropping down to a total worth of $2.24 trillion at the moment of publication.

Data from CoinGlass reveals that over $556 million in futures contracts were forcibly closed or sold off during the previous day.

As I observed the market over the past 24 hours, Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) all exhibited notable price stability with volatility levels of 0.7%, 4.0%, and 6.2% respectively. At the time of my analysis, Bitcoin was trading at $60,936, Ethereum at $2,360, and Solana at $137.5. The market caps for these three cryptocurrencies stood at a staggering $1.20 trillion (BTC), $283.66 billion (ETH), and $64.34 billion (SOL). In addition to this, liquidations worth over $143 million, $119 million, and $20 million were triggered for Bitcoin, Ethereum, and Solana respectively during the same time frame.

As reported by CoinGlass, approximately 105,849 traders suffered losses and had their positions closed over the last 24 hours. The largest single liquidation order was processed on Binance‘s ETHUSDT trading pair, worth around $12.24 million.

Bullish Sentiment Remains Intact

Previously discussed, there’s a lot of excitement regarding the month of October. Particularly relevant to cryptocurrency prices and the overall market status.

Nevertheless, although things didn’t begin as optimistically as the bulls had anticipated, there is still a strong sense of optimism.

1) It’s worth noting that historically, this month has been favorable for digital assets. Specifically, Bitcoin has only posted negative returns during this month on just two occasions since 2013.

As a researcher, I can confirm that my technical analysis aligns with the optimistic forecast for October and Q4 2024. A recent report from 10x Research echoes this sentiment, suggesting a high probability of a cryptocurrency rally before the year ends.

In a different article, Bernstein expressed optimistic expectations towards Bitcoin, yet he tied these hopes to the result of the 2020 U.S. presidential election. As per Bernstein’s predictions, if Donald Trump, the Republican candidate, were to win in November, Bitcoin might surge approximately 30% to reach $90,000 by Q4 2024.

Currently, according to recent data from Coinspeaker, Bitcoin is being traded at approximately $60,692, representing a decrease of 0.75% over the last 24 hours.

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2024-10-03 13:51