Crypto Market Crash: Iran-Israel Conflict Sparks Sell-Off Across Major Cryptos
The post Crypto Market Crash: Iran-Israel Conflict Sparks Sell-Off Across Major Cryptos appeared first on Coinpedia Fintech News
The crypto market suffered a sharp drop as tensions in the Middle East escalated. Bitcoin (BTC), the top cryptocurrency, fell nearly 5% to $60,834 after Iran fired missiles at Israel. This decline mirrors a broader sell-off in global markets, as investors grow more worried about the conflict.
Will it change the fate of “uptober”? Panic and fear grip the market once again here’s the insight!
Due to the tension in the Middle East, BTC fell below $61,000 and ETH fell below $2,500. In the past 24h, 155,000 accounts were liquidated, with a liquidation amount of $533 million, of which long orders were liquidated for $451 million. The largest single liquidation occurred on…
— Wu Blockchain (@WuBlockchain) October 2, 2024 Altcoins Follow Bitcoin’s DeclineAlongside Bitcoin, Ethereum (ETH) and other major altcoins also suffered steep losses. ETH, which had been performing strongly in recent days, dropped over 6%, hovering around $2,450. Other major cryptocurrencies like Solana (SOL), Cardano (ADA), and Dogecoin (DOGE) were also impacted, with losses ranging between 7.5% and 10%. As a result, the global cryptocurrency market capitalization fell by 4.7%, reaching $2.14 trillion.
Geopolitical Uncertainty Shakes Investor ConfidenceThe market’s sharp decline followed Iran’s missile attacks on Israel, increasing geopolitical uncertainty. Investors adopted a risk-off strategy, pulling away from speculative assets like cryptocurrencies. This shift also affected traditional financial markets, with the S&P 500 dropping 1.1% and the Nasdaq falling 1.85%. Tech giants such as Nvidia and Apple experienced share declines of 4% and 3.6%, respectively.
Large Crypto LiquidationsOn top of this, over $489 million in crypto assets were liquidated in the last 24 hours, as traders faced unexpected volatility. According to Coinglass data, $416.6 million of these liquidations were in long positions. Most liquidations occurred in a four-hour window after news of the missile attacks broke, indicating how quickly the market responded to the geopolitical developments.
As investors pulled out of risky assets like Bitcoin, safe-haven assets like gold and the U.S. dollar saw gains. The U.S. Dollar Index rose 0.6%, while the Philadelphia Gold and Silver Index (XAU) jumped by 1.1%. This movement reflects a broader shift towards safer assets amid growing geopolitical risks.
Long-Term OutlookDespite the current downturn, Bitcoin has historically rebounded following geopolitical crises. Some analysts point out that Bitcoin has outperformed traditional assets like gold and the S&P 500 during past crises, offering hope for a future recovery. However, in the short term, market volatility is likely to continue as tensions in the Middle East remain high.
This sudden crash can be fatal for the entire crypto, will BTC rebound, or will drop further down? Tell us your views.
.article-inside-link { margin-left: 0 !important; border: 1px solid #0052CC4D; border-left: 0; border-right: 0; padding: 10px 0; text-align: left; } .entry ul.article-inside-link li { font-size: 14px; line-height: 21px; font-weight: 600; list-style-type: none; margin-bottom: 0; display: inline-block; } .entry ul.article-inside-link li:last-child { display: none; }