The Total crypto market capitalization for all crypto assets is down by 6% as liquidations in the crypto market crossed $550 million.
There are various factors contributing to this slump but the most significant is the brewing geopolitical tension in the middle east.
The middle eastern country of Iran fired over 400 missiles into Israeli territory two days ago marking a serious escalation of tensions in the already troubled region.
The Israelis in response has promised serious retaliation adding to the uncertainty which reflected in the crypto market.
In response to the uncertainty, Crypto Investors and traders are dumping risky assets like cryptocurrencies for more stable options leading to the drop in prices of key assets.
The final result of these strings of action is a slump in the total market capitalization of all crypto assets by 6% as key assets like Bitcoin and Ethereum dropped in price value.
$556 million in Liquidations
According to data from Coinglass, the industry’s leading source on liquidations over $556 million worth of futures contracts were liquidated in the past 24 hours.
Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) saw liquidations worth over $143 million, $119 million, and $20 million, respectively.
Out of the $556 million worth of futures contracts liquidated, 86.6% or $482.2 million were long positions, while the remaining 13.4%or $74.6 million were shorts.
In the course of 24 hours, 167,802 traders were liquidated with the single largest liquidation order on Binance’s BTCUSDT pair worth $12.6 million.
On the crypto exchanges, Binance led in terms of liquidation volume. It accounted for 49.1% of the total liquidations, with $273.4 million liquidated on the platform.
Binance was followed by OKX, Bybit, and HTX, which saw liquidations totaling $182.6 million, $43.3 million, and $40.2 million, respectively.
Uptober still on course
Despite the drop in prices, Market analysts still belive October will be a bullish month for crypto assets. The Term “Uptober” was coined to express this optimism for a bullish rally.
10X research a leading market intelligence firm expressed that there are strong chances of a good run before the end of the year and in Q4 2024.
Another report by Bernstein postulated that a win for Donald Trump in the November Elections could propel Bitcoin to as high as $90,000 in Q4 2024.
What to Know
- The tensions in Iran and Israel is the latest development in what has been a string of offensives by Israel. The middle eastern country has attacked Lebanon and Hezbollah in short period of time leading to the more tensions in the region.
- Prices of Assets like Bitcoin and Ethereum dipped following the missile attacks by Iran. At press time Bitcoin is exchanging hands for $60,759.
