Bitcoin Faces Downward Trend Amid Global Tensions
On October 1, Bitcoin (BTC) experienced a significant decline alongside the stock markets as geopolitical tensions escalated in the Middle East. Following Israel’s announcement of ground operations in Lebanon, retaliatory actions from Iran were reported, leading to an immediate market reaction.
The Israel Defense Forces shared a report via their official account on X, announcing at 4:36 P.M. UTC that Iran was launching rocket attacks into Israeli territory. There are concerns that Iran may initiate a second wave of missile strikes within the next few hours.
Market Reactions and Liquidations
This heightened volatility led to over $489 million in liquidations within a 24-hour period, with a staggering $312 million liquidated in just four hours, according to data from Coinglass.
- Long liquidations accounted for $416.6 million.
- Short liquidations totaled approximately $73 million.
As of the time of this report, BTC was trading at $61,598, marking a decline of 3% over the past day.
Major Altcoins Encounter Greater Losses
The ripple effects of Bitcoin’s downturn were felt across many altcoins:
- Ethereum (ETH): Down 4.31% to $2,490.
- Solana (SOL): Decreased by 5.51%, trading at $146.8.
- Toncoin (TON): Fell 6.2% to $5.33.
- Dogecoin (DOGE): Dropped by 7.3% to $0.1063.
The Fear and Greed Index, which tracks crypto investor sentiment, decreased significantly from the greed zone at 61 points to a neutral area of 50 points within 24 hours.
Stock Market Fluctuations and Alternative Investments
The US stock market also witnessed declines, with the S&P 500 (SPX) down 1.1% and the Nasdaq Index retreating 1.85%. Major technology stocks, including Nvidia (NVDA) and Apple (AAPL), saw declines of 4% and 3.6% respectively.
In contrast, the US Dollar Index rose by 0.6%, and the Philadelphia Gold and Silver Index (XAU) increased by 1.1%.
According to Jeroen Blokland, founder of the Blokland Smart Multi-Asset Fund, many investors are opting to sell Bitcoin in favour of gold amidst escalating conflicts. He notes that historically, Bitcoin has performed well as a hedge against geopolitical turmoil since 2020.
Referencing a BlackRock report, Blokland pointed out that BTC has outpaced the 60-day returns of both the SPX and gold during several significant global events, including the US-Iran tensions and the COVID-19 outbreak in 2020, as well as the recent banking crisis in 2023.
Bitcoin Market Update
As of 6:57 PM UTC on October 1, 2024, Bitcoin remains the leading cryptocurrency by market capitalization, priced at $1.23 trillion, with a 24-hour trading volume of $43.81 billion and a decrease of 2.44% in the past 24 hours.
Overall Cryptocurrency Market Overview
The total cryptocurrency market capitalization stands at $2.17 trillion, with a 24-hour trading volume of $102.79 billion. Bitcoin holds a dominance of 56.46%.
