Originally published on: October 01, 2024
As tensions rise in the Middle East and the US equities experience a sell-off, the crypto market is facing a dip on Oct. 1. The total crypto market capitalization has dropped by over 1.3% to approximately $2.22 trillion in the last 24 hours, mirroring the pullback in stocks.
The factors contributing to the downturn in the crypto market are multifaceted. Reports of potential escalations in the Middle East involving Iran, Lebanon, and Israel have fueled instability in equities and digital assets. The possibility of a ballistic missile attack by Iran against Israel as reported by Disclose.tv has sparked concerns.
Israeli Prime Minister Benjamin Netanyahu’s statement hinting at the inadequacy of current actions adds to the market jitters. Oil prices are on the rise, which could lead to increased inflation, potentially impacting the US Federal Reserve’s interest rate decisions.
In the wake of these geopolitical tensions, both US equities and cryptocurrencies have shown high volatility. The S&P 500, Dow Jones index, and Nasdaq Composite index all saw declines, reflecting investor uncertainty.
Bitcoin, the leading cryptocurrency, initially dropped by 2.6% over the last 24 hours before rebounding. Ethereum, another major player, experienced a similar dip followed by a slight recovery. Long traders betting on the market’s upside have witnessed significant liquidations, adding to the selling pressure.
The reduction in open interest indicates a pullback from active futures contracts as traders retreat. However, positive funding rates for top coins like Bitcoin and Ether suggest that remaining traders are still bullish.
While it’s important to note that this article does not offer investment advice, it’s clear that the market is reacting to ongoing geopolitical events and economic uncertainties. Traders should conduct thorough research and analysis before making any investment decisions in these turbulent times.
