Greed

2024

Bitcoin

Shiba Inu

Bitcoin prices dumped almost $4,000 in less than 24 hours following an Iranian missile strike on Israel late on Oct. 1.
The asset was trading at just over $64,000 on Tuesday but it <a href="https://cryptopotato.com/350-million-in-liquidations-as-bitcoin-btc-price-dumped-to-2-week-low/" rel="noopener noreferrer nofollow">tanked</a> hard to bottom out at a little above $60,000 following the attack.
BTC has since recovered to around $61,700 during Wednesday morning trading in Asia, but it remains down 3% on the day.
<h2 id="no-need-to-panic">No Need to Panic</h2>
Market sentiment has rapidly changed from ‘greed’ a few days ago back to ‘fear’ today, according to the Bitcoin Fear and Greed Index.
<blockquote class="twitter-tweet">
 Bitcoin Fear and Greed Index is 42 – Neutral Current price: $60,836 <a href="https://t.co/gi3cDBB2L6" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/gi3cDBB2L6</a>
 — Bitcoin Fear and Greed Index (@BitcoinFear) <a href="https://twitter.com/BitcoinFear/status/1841266874740318667?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 2, 2024</a>
</blockquote>

However, this is nothing new, and the panic sell-off is largely irrational behavior. Some may label Bitcoin as a ‘safe haven’ asset, but it has previously exhibited this behavior during geopolitical tension.
BTC dumped more than 13% in the days that followed Iran’s drone strike on Israel in mid-April.
Conversely, commodities such as gold and crude oil are up today. Bitcoin pioneer Samson Mow saw the irony in this, posting on X on Oct. 2.
<blockquote class="twitter-tweet">
 Imagine trying to hedge against war by selling <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Bitcoin</a> to buy paper gold that you can’t move anywhere in the event of actual war. <a href="https://t.co/KX6WDaBJiM" target="_blank" rel="noopener noreferrer nofollow">https://t.co/KX6WDaBJiM</a>
 — Samson Mow (@Excellion) <a href="https://twitter.com/Excellion/status/1841279980032119046?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 2, 2024</a>
</blockquote>

Analysts do not appear to be concerned as Bitcoin remains within its six-month range-bound channel despite this selloff.
Veteran trader Peter Brandt <a href="https://x.com/PeterLBrandt/status/1841270939901911145" target="_blank" rel="noopener noreferrer nofollow">observed</a> that the recent rally did not disturb the sequence of lower highs and lower lows.
“Only a close above $71,000 confirmed by a new ATH will indicate that the trend from the Nov. 2022 low remains in force,” he added.
Meanwhile, analyst “IncomeSharks” predicted another dip before things pick up <a href="https://cryptopotato.com/bitcoin-records-best-september-in-a-decade-what-will-happen-in-uptober/" rel="noopener noreferrer nofollow">later this month</a>.
<blockquote class="twitter-tweet">
 <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">#Bitcoin</a> – We are all taking guesses here. If we are to get Pumptober I think this is still the likely scenario. Make people think $59k is the low but wick to $57k. Then people are bearish and sell and we reverse. Slowly back up and finish the month red then November green. <a href="https://t.co/33wAPHswyz" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/33wAPHswyz</a>
 — IncomeSharks (@IncomeSharks) <a href="https://twitter.com/IncomeSharks/status/1841230957619396720?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">October 1, 2024</a>
</blockquote>

‘Rekt Capital’ <a href="https://x.com/rektcapital/status/1841244597235704230" target="_blank" rel="noopener noreferrer nofollow">said</a> that BTC would test support at $59,800 following a retrace from resistance levels within the channel.
<h2 id="elsewhere-on-crypto-markets">Elsewhere on Crypto Markets</h2>
The specter of war in the Middle East has rattled the entire crypto market, with total capitalization falling 4.7% on the day, or around $150 billion. It currently stands at $2.26 trillion, according to CoinGecko.
Ethereum fell almost 8%, dropping to $2,450, before recovering marginally during Asian trading on Wednesday.
As usual, the altcoins were bleeding out even more, with heavier losses for Dogecoin (DOGE), Toncoin (TON), Avalanche (AVAX), Shiba Inu (SHIB), <a href="https://cryptopotato.com/chainlink-partners-with-australian-bank-anz-in-rwa-tokenization-initiative/" rel="noopener noreferrer nofollow">Chainlink</a> (LINK), and Polkadot (DOT).
In other words, it is the same old story for crypto and the same panicking from those with little conviction in the asset class.
The post <a href="https://cryptopotato.com/bitcoin-dumps-4000-as-fear-grips-markets-on-middle-east-conflict/" rel="noopener noreferrer nofollow">Bitcoin Dumps $4,000 as Fear Grips Markets on Middle East Conflict</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

Bitcoin Dumps $4,000 as Fear Grips Markets on Middle East Conflict

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