Leading cryptocurrencies plummeted Tuesday as Iran's missile barrage toward Israel sparked fears of a full-blown regional war in the Middle East.
| Cryptocurrency | Gains +/- | Price (Recorded at 8:30 p.m. EDT) |
| Bitcoin (CRYPTO: BTC) | -3.48% | $61,118.92 |
| Ethereum (CRYPTO: ETH) | -5.66% | $2,464.05 |
| Dogecoin (CRYPTO: DOGE) | -6.29% | $0.1077 |
What Happened: Bitcoin plunged to a nearly two-week low of $60,370 as Iran launched a missile attack against Israel. The leading cryptocurrency recovered to $61,000 when the attack ended.
Ethereum witnessed a steeper drop, crashing to levels not seen since Aug. 19.
Total cryptocurrency liquidations exceeded $521 million in the last 24 hours, the highest since the Black Monday meltdown in August. Nearly $450 million in bullish bets were erased.
Bitcoin's Open Interest dropped 4.79% in the last 24 hours, while Ethereum saw a 5.6% decline in funds locked in its futures market.
The market sentiment fell from plunged into the "Fear" zone, according to the popular Cryptocurrency Fear & Greed Index, implying significant FUD and selling pressure.
Top Gainers (24-Hours)
| Cryptocurrency | Gains +/- | Price (Recorded at 8:30 p.m. EDT) |
| FTX Token (FTT) | +12.00% | $2.10 |
| EigenLayer (EIGEN) | +11.24% | $4.13 |
| Wormhole (W) | +5.32% | $0.3119 |
The global cryptocurrency stood at $2.14 trillion in the last 24 hours, following a contraction of 4.16% in the last 24 hours.
The stock market felt the pinch as well, dampening the high enthusiasm coming off last month. The Dow Jones Industrial Average retreated 173.18 points, or 0.41%, to end at 42,156.97. The S&P 500 slipped 0.93% to close at 5,708.75, while the tech-heavy Nasdaq Composite ended 1.53% lower at 17,910.36.
War fears caused a spike in crude oil prices, with the West Texas Intermediate (WTI) rising 1.66% to $70.86 a barrel. Additionally, spot gold rose past $2,660 per ounce on safe-haven demand, but retreated later after the missile attack ended.
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Analyst Notes: Legendary trader Peter Brandt stated that Bitcoin's recent rally was didn't defy its 7-month trend of lower highs and lower lows.
"Only a close above 71,000 confirmed by a new ATH will indicate that the trend from the Nov 2022 low remains in force," Brandt added.
The recent rally in Bitcoin did NOT disturb the 7-month sequence of lower highs and lower lows. $BTC
— Peter Brandt (@PeterLBrandt) October 2, 2024
Only a close above 71,000 confirmed by a new ATH will indicate that the trend from the Nov 2022 low remains in force pic.twitter.com/lFO9A20VPD
Widely-followed cryptocurrency commentator, MartyParty blamed big whales for the intense sell-offs, deeming it "pure manipulation" to eliminate bullish longs using war narratives.
"Whales sell large amounts of crypto, the red candles cause panic, the price drops, paper hands panic sell, same whales buy back and accumulate more tokens. That's the game," he explained, urging his followers not to fall for this.
I analyze Bitcoin flows, majority of the selling today was from known market maker and exchange addresses aka Whales.
— MartyParty (@martypartymusic) October 1, 2024
This is pure manipulation to eliminate leverage longs using the "war narratives" to distribute according to the #Wykoff reaccumulation strategy.
Whales sell...
Photo by CMP_NZ on Shutterstock
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