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Leading Cryptocurrencies Retrace Monday as Geopolitical Tensions Escalate

Barbara Streisand
Barbara StreisandOriginal
2024-10-01 16:18:14284browse

What Happened: Bitcoin went downhill throughout the day, at one point slipping below $63,000, wiping away gains from the previous day's rally to $66,000.

Leading Cryptocurrencies Retrace Monday as Geopolitical Tensions Escalate

Bitcoin Price Drops Below $63K As Israel Launches Military Op In Lebanon; Key Takeaways From September

After a stellar September rally, leading cryptocurrencies retraced Monday as geopolitical tensions escalated following Israel launching a military operation in Lebanon.

Bitcoin slid throughout the day, at one point slipping below the $63,000 mark, wiping away gains from the previous day’s rally to $66,000.

Ethereum was comparatively less hassled, continuing to wiggle in the $2,600 region.

The Israeli military reportedly launched a localized operation against Hezbollah targets in southern Lebanon, the latest flare-up in hostilities in the tensed Middle East region.

Cryptocurrency liquidations surpassed $225 million in the last 24 hours, the highest since Sept. 6. More than $180 million locked in long positions were erased.

Bitcoin’s Open Interest slid 1.14%, further indicating the liquidation of bullish leveraged bets.

The number of traders opening short positions for the leading cryptocurrency continued to outnumber those taking bullish positions, according to the Long/Short Ratio.

After beginning the month in the "Extreme Greed" zone, the market sentiment fell to "Neutral," according to the popular Cryptocurrency Fear & Greed Index.

On a positive note, the market ended September on a high, with the biggest monthly gains ever recorded at 7.35%.

Top Gainers (24-Hours)

The global cryptocurrency stood at $2.23 trillion in the last 24 hours, shrinking 2.42% in the last 24 hours.

Stocks ended September on a high. The S&P 500 gained 24.31 points, or 0.42%, to close at 5,762.48, while the Dow Jones Industrial Average lifted marginally by 0.04% to end at 42,330.15. Both the blue-chip indexes closed at record highs. The Nasdaq Composite added 0.38% to end at 18,189.17.

The rally recouped losses following Fed Chair Jerome Powell’s comments that economic data would determine the speed of future interest rate cuts and that the regulator was not in a hurry.

As expected, the U.S. dollar initially strengthened following the hawkish remark, with the dollar index rising to 100.75. At last check, the index was down 0.04% at 100.715.

Investors' next focus would be on the unemployment data for September, due for release on Friday. Powell stated that one of the Fed’s main goals was not to have higher unemployment, as they bring inflation down.

See More: Best Cryptocurrency Scanners

Analyst Notes: Popular on-chain research firm Santiment highlighted its earlier analysis, which predicted a market top due to Bitcoin’s strong bullish crowd sentiment.

"With Monday’s retrace, there are some expected panic sells. If the FOMO turns to FUD, the bull market should resume quickly," Santiment predicted.

“As we mentioned Friday, the crowd's sentiment toward Bitcoin had been particularly bullish, indicating a high top probability for crypto markets. With Monday's retrace, there are some expected panic sells. If the FOMO turns to FUD, the bull market should resume quickly.”

Influential cryptocurrency trader Ali went on to underline lower interest in King Crypto, citing less internet searches. "Believe it or not, this is bullish!" he added.

“Nobody is searching for #Bitcoin, according to Google Trends. Believe it or not, this is bullish!”

Widely-followed cryptocurrency investor Ted deemed the latest fall as a "bullish retest," highlighting the significance of stabilizing an overheated market.

"Now the market looks much healthier. I’m expecting a reversal soon," the analyst projected.

“$BTC Bullish Retest ? Nothing goes up forever, and corrections are needed to flush the overleveraged longs.

Now the market looks much healthier.

I'm expecting a reversal soon.”

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