|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With how positive the end of September was in the crypto market, no one would have imagined a bloody start for October. The market suddenly dropped on October 1, which ruined traders’ hopes for a good “uptober.”.
The crypto market suddenly dropped on October 1, ruining traders’ hopes for a good “uptober.” Bitcoin and Ethereum prices experienced a dip that saw the total value of all cryptocurrencies fall by more than 1.3% to over $2.22 trillion.
Middle Eastern geopolitical unrest had a big slam on digital assets and traditional financial markets over the past two days. Recent reports suggest potential escalations involving Iran, Lebanon, and Israel, raising concerns over the global economic landscape.
The US is sending a few thousand troops to the Middle East, to bolster security and defend Israel if necessary, the Pentagon said Monday. This news was announced yesterday evening, following Israel's raids into Lebanon.
According to Unusual Whales, the U.S. had intelligence suggesting that Iran may soon launch a missile attack against Israel. Israeli Prime Minister Benjamin Netanyahu’s statement about further actions heightened market anxieties.
Investors are more worried about rising prices because of this and the higher cost of oil. However, this might stop the US Federal Reserve from lowering the interest rates more.
Furthermore, both stock and cryptocurrency markets fell a lot as price worries grew. On Oct. 1, Bitcoin dropped 2.6% to $61,503 before slightly recovering, while Ethereum experienced a brief 12.6% decline before stabilizing.
Whale Activity and Outflows from Bitcoin and Ethereum ETFs
Large sell-offs from crypto whales have worsened the downturn in the crypto market. According to Lookonchain, an early Ethereum ICO participant sold another 19,000 ETH, worth $47.54 million, over the past two days. This sell-off contributed to increased volatility in the market.
This #Ethereum ICO participant sold another 19,000 $ETH($47.54M) in the past 2 days!
The participant received 150K $ETH(ICO cost was $46.5K, now worth $358M) at #GENESIS.
uD83DuDC48https://t.co/WbaTNzh5T4 pic.twitter.com/p82RcPRYMd
Moreover, another factor contributing to the depreciation of Bitcoin and Ethereum was ETF outflows. In another tweet, Lookonchain mentioned that there was a net withdrawal of 646 BTC, or $39.02 million, from Bitcoin ETFs.
Meanwhile, 10,828 ETH, valued at $25.23 million, left the Grayscale Ethereum Trust (ETHE), indicating a significant withdrawal from Ethereum ETFs as well. These withdrawals have led to decreased liquidity and put downward pressure on pricing.
Liquidations and Market Volatility
The market has become more volatile due to increasing liquidations, whale sell-offs, and ETF withdrawals. The falling cryptocurrency prices are causing many people to sell, which is pushing the market even lower.
As people lose faith in cryptocurrencies and their total value goes down, the whole field is getting weaker. However, as tensions in global politics continue to unfold and liquidations increase, market participants are closely monitoring developments for signs of stability.
Follow us on X (Twitter), CoinMarketCap and Binance Square for more daily crypto updates.
Get all our future calls by joining our FREE Telegram group.
We recommend eToro
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- Bitcoin (BTC) Price Drops Below $61,000 as Geopolitical Tensions Intensify
- Oct 04, 2024 at 07:05 am
- The latest sell-off, triggered by geopolitical tensions in the Middle East, has seen the price lose key support levels: the 50-day exponential moving average (EMA) at $61,318 and the 100-day EMA at $61,438.
-
- Bitcoin Climbed Past $61,400 on Wednesday After Taking a Major Tumble Amid Escalating Conflict in the Middle East, Dampening Expectations for an October Rally
- Oct 04, 2024 at 06:45 am
- Prominent Bitcoin analyst Willy Woo said that Bitcoin's current market structure indicated bearishness in the mid-term.
-
- Bitcoin (BTC) Value Motion Faces a Range of Influences, How Will the Escalating Geopolitical Tensions in the Middle-East Affect Bitcoin?
- Oct 04, 2024 at 06:40 am
- Bitcoin's [BTC] value motion has had a wide range of influences over time. From financial influences to geopolitical publicity, however may the escalating geopolitical outcomes within the Center-East affect Bitcoin?