- Middle East tensions between Iran and Israel caused a massive crypto market shakeup, with $489 million in crypto positions liquidated in the past 24 hours
- Bitcoin crashed along with stock markets, dropping 3% to trade at around $61,598 as of press time
- Major altcoins like Ethereum, Solana, Toncoin, and Dogecoin registered heavier losses, with Dogecoin tumbling 7.3%
Crypto markets endured a bloodbath over the past 24 hours as escalating conflicts in the Middle East prompted a cascade of liquidations and heavy losses across digital assets.
Escalation Between Israel and Iran
Tensions flared after Israel announced ground operations in Lebanon, prompting retaliation from Iran in the form of missile strikes against Israeli territory. This quickly raised fears of broader regional conflict.
Massive Liquidations Hammer Crypto Markets
As news spread of the escalating crisis, crypto markets reacted with alarm. According to data from Coinglass, over $489 million positions were liquidated in the past 24 hours, with the majority ($312 million) occurring in just the last four hours.
Bitcoin and Altcoins See Steep Losses
Bitcoin dropped over 3% amid the turmoil, sliding below $61,600. Meanwhile, major altcoins like Ethereum and Solana registered even steeper declines of 4-5%. Some smaller tokens like Toncoin and Dogecoin saw double-digit crashes.
Investor Fear Spikes While Gold And Dollar Surge
Reflecting growing anxiety, crypto’s Fear and Greed Index plummeted from 61 down to 50 in just 24 hours. Traditional safe havens rallied at crypto’s expense, as gold and the US dollar posted gains. US stocks also declined significantly.
Geopolitical Crises Historically Benefit Bitcoin
Despite the losses, some analysts argue Bitcoin’s long-term performance thrives during geopolitical crises. Citing data from Blackrock, investor Jeroen Blokland noted that Bitcoin has strongly outperformed stocks and gold during various conflicts in 2022-2023.
Bitcoin Remains Top Crypto Asset By Market Value
Although shaken by the day’s trading, Bitcoin remains the top-ranked crypto asset as of October 1, 2024. At 6:57 pm UTC, Bitcoin had a market capitalization of $1.23 trillion and 24-hour trading volume of $4.38 billion.
