- Bitcoin price dropped sharply on October 1st, starting at around $62,798 and dipping to $62,633 within 24 hours, down nearly 2%
- Over $250 million in futures positions were liquidated across all cryptocurrencies, with $200 million of those being long positions betting on price increases
- The sell-off was attributed to rising tensions in the Middle East, with the White House expecting an Iranian attack on Israel, causing a drop in risk-on assets like crypto and stocks
The Bitcoin price dropped sharply Tuesday morning at the beginning of October, a month historically expected to bring in gains for traders. The price of the largest digital asset now stands at $62,798 after dropping as low as $62,633. In a 24-hour period it’s down nearly 2%.
US Equities and Oil Prices Also Experience Sharp Moves
US equities also experienced a sharp sell-off and the price of oil rose after the White House said it was expecting Iran to attack Israel. Tensions in the Middle East have previously caused sell-offs of risk-on assets like crypto and stocks.
Bitcoin and Ethereum Price Drops
In the past day, over $250 million in futures positions have been liquidated across all cryptocurrencies. The vast majority of that figure ($200 million) were long positions betting on the price of digital assets to go up in the future. When a long is liquidated, the trader has lost the bet and their position is closed.
Elsewhere, Ethereum‘s price dipped harder. It’s now trading for $2,545 per coin after diving by close to 3% in the past day.
And Solana, the fifth biggest digital asset, shed even more value. The coin has dropped by nearly 4% in 24 hours and is now trading hands for $150.75.
October Historically a Strong Month
October has been dubbed “Uptober” by traders because in the past, stocks and crypto have experienced higher prices. September on the other hand has typically led to lower prices.
Previous Uptober Price Action
Earlier in September, Bitcoin’s price shot up, leading some analysts to expect the price of the asset to continue soaring. In the past 30 days, the biggest digital coin has risen 9% off the back of the Federal Reserve’s decision to slash interest rates.
Conclusion
The start of October has seen a reversal of fortunes for Bitcoin, Ethereum, and Solana. With tensions in the Middle East rattling markets, risk assets like cryptocurrencies have sold off sharply. Whether the downturn continues remains to be seen, but historically October has been a strong month for crypto price appreciation.
