- Bitcoin dropped amid geopolitical tensions, impacting market confidence and performance.
- Increased selling pressure caused a surge in Bitcoin’s trading volume.
Bitcoin’s highly anticipated ‘Uptober’ began on a bearish note, as the cryptocurrency dropped to a two-week low of $60,164. The global crypto market cap also saw a significant dip, standing at $2.15 trillion—a 4.66% decrease in just 24 hours. This came alongside a surge in trading volume, up by 52.59% to $116.53 billion.
While Bitcoin’s price fell 4% to $61,344, its trading volume soared by 54%, reflecting increased selling pressure. Bitcoin’s dominance edged up by 0.48% to 56.33%, even as major altcoins like Ethereum plunged 7%. This downturn coincided with escalating geopolitical tensions between Israel and Iran, after Iran launched 200 missiles into Israeli territory.
Meanwhile, historically, October has been a strong month for Bitcoin, with an average of 20% gains. However, after a bullish September, which closed with a 7.35% gain, the war has rattled market confidence. Sean McNulty, director of trading at Arbelos Markets, called this downturn a “momentary setback,” adding that Bitcoin’s seasonal trend of strong October performance remains intact.
As the situation in the Middle East unfolds, the S&P 500 saw a similar reaction, falling 1%, while oil prices surged 5%. Investors are flocking to traditional safe havens like bonds, gold, and the US dollar.
Can Bitcoin Investors Have Hope?
Amid these factors, Bitcoin’s technical indicators point to key support levels around $63,225. Analysts suggest that, while geopolitical events may influence short-term sentiment, Bitcoin’s long-term fundamentals, including rising global liquidity, could offer a rebound later in the month. Notably, the daily RSI is at 47, indicating it is oversold situation.
This rocky start to ‘Uptober‘ highlights the cryptocurrency market’s vulnerability to macroeconomic and geopolitical events, even as optimism for a potential year-end rally persists.
Traders and investors are closely watching for any signs of strength or potential reversals as the cryptocurrency navigates these pivotal resistance levels in an increasingly volatile market.
