STRK, AR, LDO, and CORE Altcoins See Double-Digit Losses as Geopolitical Tensions Hit the Crypto Market

Starknet (STRK) led the altcoin losses, dropping 13.4% over the past 24 hours. Trading volume remained around $151 million, while its market capitalization shrunk by 13.75%

Major altcoins, including STRK, AR, LDO, and CORE, faced double-digit losses on Oct. 2 as a downturn gripped the crypto market amid geopolitical tensions and a wave of long liquidations.

Starknet (STRK) led the altcoin losses, dropping 13.4% over the past 24 hours. Its price downturn occurred as trading volume remained around $151 million, while the altcoin’s market capitalization shrunk by 13.75%, now sitting at $772 million.

Arweave (AR) fell 14.3% to $19.98, with a daily trading volume of $226 million and a market cap of $1.3 billion, marking the lowest point in the past seven days.

Lido DAO (LDO) also suffered, down 12.7%, trading at $1.16. Lido’s market cap declined to $1.03 billion, with a daily volume of $179 million. Core (CORE) followed suit, slipping 12.4% to $0.9292, with $50.4 million in daily trading volume and a market cap reduced to $851 million.

The sharp decline in these altcoins coincided with a broader contraction in the cryptocurrency market, which saw its total market capitalization drop by over 5.5% to approximately $2.26 trillion. The downturn occurred against a backdrop of rising geopolitical instability, including Iran’s missile strikes on Oct. 1 and a pullback in US equities, which together created a pessimistic outlook for the traditionally bullish “Uptober.”

Bitcoin (BTC), the market’s anchor asset, dropped 3.2% in the last 24 hours, shedding nearly $4,000 and hitting a two-week low of $60,315 earlier today, per data from crypto.news. The decline was partly driven by the geopolitical developments, which spurred sell-offs in risk assets across global markets.

However, Bitcoin has since recovered slightly to $61,850, but its price action stands in stark contrast to that of traditional safe-haven assets like gold and oil. Gold surged 1.4% to $2,665 per ounce, nearing a record high, while crude oil spiked 7% to $72 per barrel.

The rising value of gold, oil, the US dollar, and bonds highlights the divergence between Bitcoin and traditional hedges, raising questions about Bitcoin’s status as a store of value during times of crisis.

Data from CoinGlass shows the extent of market turbulence, with $453 million in long positions liquidated over the past 24 hours, compared to $72 million in short positions. This liquidation of long trades, where investors bet on price increases, added to the selling pressure, further accelerating the drop.

This cycle of liquidations and sell-offs, especially in a volatile market, tends to ripple through the altcoin sector, dragging down the broader market.

Veteran trader Peter Brandt noted that despite Bitcoin’s rally in the last weeks of September, it is still stuck in a seven-month pattern of lower highs and lower lows.

According to Brandt, only a close above $71,000, accompanied by a new all-time high, would confirm that Bitcoin’s upward trend, which began in November 2022, is still going.

The Crypto Fear and Greed Index, which measures market sentiment, dropped from 59 last week (neutral) to 42 when writing, indicating a shift toward fear as geopolitical risks spook investors.

Historically, Bitcoin has seen heightened volatility during periods of conflict, as observed earlier this year following the Israeli-Iranian tensions, which triggered a major price correction.

Looking ahead, the current geopolitical situation could continue to impact the market, especially if the tensions escalate. Increased instability may lead to further sell-offs and heightened volatility in the cryptocurrency space.

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