The cryptocurrency market faced a sudden downturn Tuesday morning, with Bitcoin (BTC) dropping to as low as $60,371.
The cryptocurrency market faced a sudden downturn Tuesday morning, with Bitcoin (BTC) dropping to as low as $60,371, marking a nearly 3.3% decline over 24 hours according to CoinMarketCap data.
This dip comes at the start of October, a month traditionally associated with price gains and dubbed "Uptober" by optimistic crypto traders.
The sell-off wasn't limited to cryptocurrencies, as U.S. equities also experienced sharp declines amid rising geopolitical tensions.
The White House's warning about potential Iranian attacks on Israel triggered a broader market reaction, including a surge in oil prices. On October 1, Iran launched numerous missiles toward Israel reportedly in response to the killing of Hezbollah leader Hassan Nasrallah.
This development underscores the continued sensitivity of "risk-on" assets like cryptocurrencies to global political uncertainties.
The impact on crypto traders has been significant, with over $250 million in futures positions liquidated across various cryptocurrencies in the past day. Long positions, betting on price increases, accounted for $200 million of these liquidations.
Ethereum (ETH) felt an even harder hit, dropping approximately 5.5% to $2,449, while Solana experienced a steep 4.5% decline, trading at $145. This widespread downturn contrasts sharply with the market's performance in September, which saw Bitcoin rise by 9% following the Federal Reserve's decision to cut interest rates.
The timing of this market correction is particularly notable given October's historical reputation for price gains, especially compared to September's typically bearish trend.
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