The cryptocurrency market saw a sharp drop as tensions in the Middle East shook investors. Bitcoin (BTC), the largest cryptocurrency, fell by nearly 5%, hitting $60,834 after Iran fired missiles at Israel. This decline reflects a broader sell-off in global markets, driven by increased fears over the conflict.
Will it change the fate of “uptober”? Panic and fear grip the market once again. Here’s the insight!
Alongside Bitcoin, Ethereum (ETH) and other major altcoins also took heavy losses. ETH, which had been performing well recently, dropped by over 6% to around $2,450. Cryptos like Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) were hit even harder, with losses between 7.5% and 10%. Overall, the global cryptocurrency market cap fell by 4.7%, now standing at $2.14 trillion.
The market drop followed Iran’s missile strikes on Israel, escalating geopolitical tensions and making investors nervous. As a result, many pulled out of riskier assets like cryptocurrencies, which also mirrored declines in traditional markets. The S&P 500 fell 1.1%, while the Nasdaq dropped 1.85%. Big tech stocks, like Nvidia and Apple, saw declines of 4% and 3.6%.
$489 Million in Crypto Liquidated
In just 24 hours, over $489 million worth of crypto assets were liquidated as traders faced sudden price swings. Data from Coinglass showed that $416.6 million of these liquidations were long positions, most of which happened in just a four-hour window after news of the missile strikes broke. This quick reaction highlights how fast the market responds to geopolitical events.
As investors moved out of risky assets like Bitcoin, safer investments like gold and the U.S. dollar gained value. The U.S. Dollar Index rose 0.6%, and the Philadelphia Gold and Silver Index (XAU) increased by 1.1%, signaling a shift toward safety during uncertain times.
Although the current decline is steep, history suggests that Bitcoin has bounced back after past geopolitical crises. Some analysts point out that Bitcoin has often outperformed traditional assets like gold and the S&P 500 in times of crisis, offering hope for recovery. In the short term, though, volatility is likely to continue as tensions in the Middle East remain high.
Will Bitcoin recover, or is further decline ahead? Share your thoughts on what’s next for the market.
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