As of yesterday, Tuesday 1st October 2024, the crypto market has dropped to a low of $60,371.

Bitcoin (BTC) has dropped with a 3.3% decline over a 24 hour period, according to CoinMarketCap.

October is usually playfully named ‘Uptober’ and considered to be the month of optimism by crypto traders, for the best crypto gains.

The drop is believed to be due to increased geopolitical tensions such as The White House’s warning about potential Iranian attacks on Israel. This has triggered a broader market reaction, including a surge in oil prices. On October 1, Iran launched numerous missiles toward Israel reportedly in response to the killing of Hezbollah leader Hassan Nasrallah.

This development highlights the continued sensitivity of “risk-on” assets like cryptocurrencies to global political uncertainty.

The impact on crypto traders has been significant, with over $250 million in futures positions liquidated across various cryptocurrencies in the past day. Long positions, betting on price increases, accounted for $200 million of these liquidations.

Ethereum ETH has felt an even harder hit, dropping approximately 5.5% to $2,449, with Solana experiencing a steep 4.5% decline, trading at $145.

Where will this downward trend go from here?

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