search
Homeweb3.0Bitcoin and Altcoins Face Huge Selling Pressure as Israel-Iran War Escalates, Marking a Bearish Beginning to BTC's Best Month Historically

After one of the best-performing September in a decade, Bitcoin and altcoins have come under selling pressure as the bulls fail to sustain the Bitcoin price above $65,000.

Bitcoin and Altcoins Face Huge Selling Pressure as Israel-Iran War Escalates, Marking a Bearish Beginning to BTC's Best Month Historically

Bitcoin and the broader cryptocurrency market reacted sharply to the escalating Israel-Iran conflict on Tuesday, with BTC’s best month historically kicking off with a bearish trend. The Bitcoin price dropped 3.16% to the $61,715 levels while the altcoins, led by Ethereum, plummeted anywhere between 5-10%.

After one of the best September performances in a decade, Bitcoin and altcoins faced selling pressure as the bulls failed to sustain the Bitcoin price above $65,000. The selling pressure escalated on Tuesday as Iran fired 200 ballistic missiles on Israel, escalating the war between the two nations.

Bitcoin usually records an average of 20% gains in October, but it’s down by 4% in the first two days. However, Sean McNulty, director of trading at liquidity provider Arbelos Markets, stated that this is a “momentary setback”. He added, “The seasonal trend of October being the best month for Bitcoin is alive and well”.

The markets will remain on high alert as Israeli Prime Minister Benjamin Netanyahu has vowed to retaliate against the recent Iran strikes. On Tuesday, the Bitcoin ETF outflows also surged to $242 million, breaking the eight consecutive days of inflows. Some market analysts believe that Bitcoin’s all-time high ain’t coming anytime soon at least until mid-November. Moreover, the weakness in the US PMI data highlights the shrinking economy, putting additional selling pressure.

Popular crypto analyst Benjamin Cowen stated that following the Fed rate cuts in 2019, the Bitcoin price rallied for two weeks only to drop to the 100W SMA 2 months later. If the cryptocurrency repeats this pattern, the correction could extend to $50,000 levels by mid-November, as per the below chart shared by Cowen.

Just to offer a different view to consider other than the "up only" view mostly shared on this platform, in 2019, #BTC rallied for 2 weeks after the 1st rate cut, then dropped to the 100W SMA 2 months later, which would correspond to mid-November. pic.twitter.com/ogicF89JrM

— Benjamin Cowen (@intocryptoverse) October 2, 2024

With the tensions in the Middle East soaring, investors are flocking to safe-haven assets such as bonds, gold, oil, and the US Dollar. Furthermore, as per the JPMorgan report, the revenue of Bitcoin mining companies dropped to the lowest levels in September. If the BTC miners capitulate further, it can trigger another sell-off in the near term.

How the Israel-Iran War Can Impact the Market

The escalation of wars usually creates a knee-jerk reaction in the market. However, historical trends can prove to be the right guides here. Following Russia’s invasion of Ukraine in February 2022, the S&P 500 tanked by 11.5% in three months. Since Bitcoin shares a close correlation with the S&P 500, it will be interesting to watch the Bitcoin price movement going ahead following the Israel-Iran war situation.

Following the escalating Middle East tensions, the US market gave a similar reaction on Tuesday with the S&P 500 ending 1% down. On the other hand, oil prices surged by 5% as the market is pricing in the probability of a real war.

Citing the historical market patterns, the Kobeissi Letter states: “The S&P 500 falls -2% on average when a major conflict begins. The total average drawdown of these major events is -8.2%. However, there are many other factors at play that sway returns”.

The most important factor is whether the war breaks out during a recession or not. If the market is not in a recession, the average 12-month return for the S&P 500 in a war year is 9.5%. However, during a recession year, these returns turn -11.5%.

The Kobeissi Letter cites the example of the 9/11 attack in 2002 when the S&P 500 tanked by 18% as the market was already in recession. It will be interesting to see whether a Fed stimulus prevents the US recession this year.

A more recent example would be the 9/11.

This happened during a time that the economy was already in a recession.

Interestingly, this came at a time when the Fed has been hiking interest rates as they were doing since 2022.

The S&P 500 fell -18% in 12 months after 9/11. pic.twitter.com/JVk0vPvgyt

— The Kobeissi Letter (@Kobe

The above is the detailed content of Bitcoin and Altcoins Face Huge Selling Pressure as Israel-Iran War Escalates, Marking a Bearish Beginning to BTC's Best Month Historically. For more information, please follow other related articles on the PHP Chinese website!

Statement
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn
As Fear Drives Selling, BlockDAG (BDAG) Stands Out from the CrowdAs Fear Drives Selling, BlockDAG (BDAG) Stands Out from the CrowdApr 13, 2025 am 11:48 AM

As fear drives selling in the crypto market, major coins like Cardano and Solana face tough times.

The general crypto market has recovered as digital assets shake off bearish sentimentsThe general crypto market has recovered as digital assets shake off bearish sentimentsApr 13, 2025 am 11:46 AM

In the past 24 hours, the general crypto market has recovered as digital assets shake off bearish sentiments. Within this time frame

Bitcoin's Current Cycle Shows Strong Similarities to the Structural Resets Seen in Both 2017 and 2021.Bitcoin's Current Cycle Shows Strong Similarities to the Structural Resets Seen in Both 2017 and 2021.Apr 13, 2025 am 11:44 AM

Key market indicators, like the relationship between Bitcoin and market volatility (BTC/VIX ratio) and the total crypto market capitalization on weekly charts

New Meme Coins to Watch Now: Cheems Token, Siren, and PeiPeiNew Meme Coins to Watch Now: Cheems Token, Siren, and PeiPeiApr 13, 2025 am 11:42 AM

As meme coins continue to take the crypto world by storm, savvy investors are constantly looking for the next big opportunity.

The Crypto Market Has Witnessed a Rebound Following the Recent Sheer DownturnThe Crypto Market Has Witnessed a Rebound Following the Recent Sheer DownturnApr 13, 2025 am 11:40 AM

The crypto market has witnessed a rebound following the recent sheer downturn. As per the exclusive market data, the total crypto market capitalization has reached $2.71Ts

He got rich off pixelated punks — and punked the Internal Revenue Service in the processHe got rich off pixelated punks — and punked the Internal Revenue Service in the processApr 13, 2025 am 11:38 AM

A Pennsylvania man faces federal prison after pleading guilty to flipping more than $13 million worth of digital art from the infamous CryptoPunks NFT collection — and reporting none of it to the IRS, prosecutors said Friday.

Trending Meme Coins To Buy NowTrending Meme Coins To Buy NowApr 13, 2025 am 11:36 AM

In recent times, meme coins have emerged as a unique and exciting investment opportunity, drawing both seasoned investors and newcomers alike.

Toncoin (TON) Appears to Be Positioning Itself for a Short-term ReboundToncoin (TON) Appears to Be Positioning Itself for a Short-term ReboundApr 13, 2025 am 11:34 AM

Toncoin appears to be positioning itself for a short-term rebound after enduring a week of market-wide losses that affected most cryptocurrencies.

Hot AI Tools

Undresser.AI Undress

Undresser.AI Undress

AI-powered app for creating realistic nude photos

AI Clothes Remover

AI Clothes Remover

Online AI tool for removing clothes from photos.

Undress AI Tool

Undress AI Tool

Undress images for free

Clothoff.io

Clothoff.io

AI clothes remover

AI Hentai Generator

AI Hentai Generator

Generate AI Hentai for free.

Hot Article

R.E.P.O. Energy Crystals Explained and What They Do (Yellow Crystal)
3 weeks agoBy尊渡假赌尊渡假赌尊渡假赌
R.E.P.O. Best Graphic Settings
3 weeks agoBy尊渡假赌尊渡假赌尊渡假赌
R.E.P.O. How to Fix Audio if You Can't Hear Anyone
3 weeks agoBy尊渡假赌尊渡假赌尊渡假赌
WWE 2K25: How To Unlock Everything In MyRise
4 weeks agoBy尊渡假赌尊渡假赌尊渡假赌

Hot Tools

Atom editor mac version download

Atom editor mac version download

The most popular open source editor

SAP NetWeaver Server Adapter for Eclipse

SAP NetWeaver Server Adapter for Eclipse

Integrate Eclipse with SAP NetWeaver application server.

PhpStorm Mac version

PhpStorm Mac version

The latest (2018.2.1) professional PHP integrated development tool

Dreamweaver CS6

Dreamweaver CS6

Visual web development tools

mPDF

mPDF

mPDF is a PHP library that can generate PDF files from UTF-8 encoded HTML. The original author, Ian Back, wrote mPDF to output PDF files "on the fly" from his website and handle different languages. It is slower than original scripts like HTML2FPDF and produces larger files when using Unicode fonts, but supports CSS styles etc. and has a lot of enhancements. Supports almost all languages, including RTL (Arabic and Hebrew) and CJK (Chinese, Japanese and Korean). Supports nested block-level elements (such as P, DIV),