The Bitcoin price dropped sharply Tuesday morning, ushering in October—often referred to as “Uptober” by traders hoping for gains—with significant volatility. This sharp decline is occurring in conjunction with mass liquidations and increasing Middle East tensions.
Currently, Bitcoin’s price rests at $62,798, according to CoinGecko, after dropping as low as $62,633. This marks almost a 2% decline within a 24-hour period.
Impact of Middle East Tensions
U.S. equities also experienced a sharp sell-off, and oil prices surged following the White House’s expectation of an impending Iranian attack on Israel. Historically, such geopolitical tensions have triggered sell-offs in “risk-on” assets like cryptocurrencies and stocks.
Mass Liquidations Amid Market Volatility
CoinGlass data reveals that over $250 million in futures positions have been liquidated across all cryptocurrencies within the past day. Among these, an overwhelming $200 million were long positions, indicating bets on the rising prices of digital assets that have now been closed due to losses.
Ethereum and Solana have not been spared from this turmoil. Ethereum’s price has dropped to $2,545 per coin, a nearly 3% decline within 24 hours. Meanwhile, Solana, the fifth-largest digital asset, has decreased by almost 4%, now trading at $150.75.
October, often optimistic as “Uptober” due to historically higher prices in stocks and crypto, seems to be breaking from tradition this year. This sharp drop follows a substantial rise in Bitcoin prices last month, fueled by Federal Reserve’s interest rate cuts, which saw Bitcoin increase by 9% over the past 30 days.
Stay updated with the latest market movements, and don’t miss out on the evolving financial landscape.
Edited by Stacy Elliott.
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