Long

Bitcoin ETF

when

The entire crypto market dipped on Oct. 1 as rising geopolitical tensions in the Middle East, increasing long liquidations and a sell-off in US equities appeared to cool investor enthusiasm for “Uptober.”
Over the last 24 hours, the total crypto market capitalization dropped by over 1.3% to about $2.22 trillion, and stocks pulled back.
<figure>
 <img alt="Why is the crypto market down today?" name="" src="https://s3.cointelegraph.com/uploads/2024-10/019248ff-6592-7555-81da-475a76827666">
 <figcaption style="text-align: center;">
 24-hour performance of large-cap cryptocurrencies. Source: Coin360
 </figcaption>
</figure>
Let’s look at the factors driving the crypto market down today.
<h2 id="strong-crypto-prices-slip-over-escalating-situation-in-the-middle-east-strong">Crypto prices slip over escalating situation in the Middle East</h2>
The instability witnessed in equities and digital assets on Oct. 1 follows reports of a possible escalation in the Middle East between Iran, Lebanon and Israel.
The United States has indications that Iran is preparing to imminently launch a ballistic missile attack against Israel, <a data-ct-non-breakable="null" href="https://x.com/disclosetv/status/1841110220350599309" rel="null" target="null" text="null" title="null">according</a> to Disclose.tv.&nbsp;
<figure>
 <img alt="Why is the crypto market down today?" name="" src="https://s3.cointelegraph.com/uploads/2024-10/019248ff-c6e5-71de-94b7-94b3dd9e2bac">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/unusual_whales/status/1841099998445940770" rel="null" target="null" text="null" title="https://x.com/unusual_whales/status/1841099998445940770">Unusual_Whales</a>
 </figcaption>
</figure>
Israeli Prime Minister Benjamin Netanyahu <a data-ct-non-breakable="null" href="https://www.cnbc.com/2024/09/28/hezbollah-leader-hassan-nasrallah-killed-in-strike-israeli-army-says.html" rel="null" target="null" text="null" title="null">stated</a> that the actions taken so far “will not be enough,” as <a data-ct-non-breakable="null" href="https://www.cnbc.com/2024/09/28/hezbollah-leader-hassan-nasrallah-killed-in-strike-israeli-army-says.html" rel="null" target="null" text="null" title="null">reported</a> by CNBC. As oil prices continue to spike, they would likely push inflation higher, limiting the US Federal Reserve’s ability to continue cutting interest rates.
One hour after Wall Street opened on Oct. 1, the S&amp;P 500 was down 1.1%, while the Dow Jones index dropped 302 points, or 0.7% The Nasdaq Composite index pulled back 1.4%.&nbsp;
<figure>
 <img alt="Why is the crypto market down today?" name="" src="https://s3.cointelegraph.com/uploads/2024-10/01924901-2574-7eb8-ad42-4a8f3265a637">
 <figcaption style="text-align: center;">
 24-hour performance of US equities Source: Financial Visualizations
 </figcaption>
</figure>
Similarly, crypto prices displayed high volatility, with Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) dropping 2.6% over the last 24 hours to trade at $61,503 before recovering to $62,557 at the time of publication. Ether (<a data-ct-non-breakable="null" href="https://cointelegraph.com/ethereum-price" rel="null" target="null" text="null" title="null">ETH</a>) which initially dropped by 12.6% to $2,534, is now trading 0.5% higher at $2,569. 
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/3-signs-bitcoin-s-q3-close-bullish" rel="null" target="null" text="null" title="null">3 signs that Bitcoin’s Q3 close was bullish</a> 
<h2 id="strong-over-340-million-in-liquidations-catch-crypto-traders-offside-strong">Over $340 million in liquidations catch crypto traders offside</h2>
Data from CoinGlass reveals that long traders—those betting on the crypto market’s upside—have witnessed a total of $291.3 million worth of liquidations in the last 24 hours. In comparison, short traders suffered over $55.6 million in liquidations in the same period.
Bitcoin liquidations reached $53 million over the last 4 hours, with over $71.8 million worth of cumulative leveraged positions liquidated on the day, according to CoinGlass <a data-ct-non-breakable="null" href="https://www.coinglass.com/LiquidationData" rel="null" target="null" text="null" title="null">data</a>. The total liquidations across the wider crypto market stand at $346.8 million over the last 24 hours, with the tally increasing at the time of publication.
<figure>
 <img alt="Why is the crypto market down today?" name="" src="https://s3.cointelegraph.com/uploads/2024-10/01924901-ba7b-76a0-9c16-3ed958fa4c8d">
 <figcaption style="text-align: center;">
 Total crypto liquidations. Source: CoinGlass
 </figcaption>
</figure>
When long positions are liquidated, traders who are betting on prices going up are forced to sell their positions, often at a loss. This increased selling pressure has driven the crypto market valuation lower today.
Meanwhile, the open interest reduction signals a decrease in active futures contracts, indicating that traders are closing their positions and stepping back from the market.
Nonetheless, <a data-ct-non-breakable="null" href="https://www.coinglass.com/FundingRateHeatMap" rel="null" target="null" text="null" title="null">funding rates</a> of most top coins, including Bitcoin and Ether are positive, indicating that traders still in the market are generally more bullish, as they are willing to pay more to maintain long positions.
<figure>
 <img alt="Why is the crypto market down today?" name="" src="https://s3.cointelegraph.com/uploads/2024-10/01924902-338e-7137-b8d7-8f6861db0875">
 <figcaption style="text-align: center;">
 Crypto market’s funding rate heatmap. Source: CoinGlass
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Why is the crypto market down today?

Table of Contents

Cointelegraph

Άλλα άρθρα που δημοσιεύτηκαν στις 19 Μαρ 2024

Bitcoin Falls Below $64,000 Ahead Of Fed Meeting; dogwifhat, Theta Network Among Top Losers

Crypto’s Next Frontier: Kelexo Presale’s 30X Potential Lures BNB & ETH Titans

Arbitrum (ARB) Market Cap Hits ATH Despite Correction, Is a Rally Looming?

SEC Levies $21 Million Fine Against Genesis for Unregistered Crypto Securities

Panduan Tren Kripto: Dogecoin (DOGE) dan Shiba Inu (SHIB) Terus Merosot, Furrever Token (FURR) Ja...

Bitcoin, Ethereum Bleed As 5 Crypto To Buy Standout With 100X Potential

Join our free newsletter for daily crypto updates!