Just when the whole crypto community thought we were ready for “uptobar,” the market turned against us. The Bitcoin price dipped 4.5% today and is now trading just slightly above $60k.
Ethereum dipped 6% and is now trading below $2.5k. Of course, many altcoins faced 10-20% plunges. But, what’s going on?
The main reason for the plunge is tensions in the Middle East. Tensions escalated sharply as Iran launched missiles at Israel, which has led to increased investor anxiety across various asset classes, including crypto. In fact, the market faced substantial long liquidations, with about $403 million worth of long positions being liquidated in just 24 hours.
Bullish Signals Amidst Market Downturn
Despite the current dip, Miles Deutscher pointed out that there are still a lot of bullish signals:
- The FED officially pivoted with a 50bps rate cut
- China is stimulating its economy
- Global liquidity is on the rise
- FTX distributions are beginning
- Q4 (crypto’s best quarter historically) has just begun
- The election is just a month away
On top of this, Bitcoin historically pumps in Q4 after the halving, so we’ll see if it manages to do the same this time. For now, the market is “in the red,” and we’ll see how this week and October play out.
Read also: Can Holding Ripple’s XRP Make You a Millionaire? Here’s How Many Tokens You Would Need
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