Bitcoin Drops to $60K; Major Altcoins Suffer Even More

The overall capitalization of the cryptocurrency market took a significant hit, dropping by 5.2% over the last 24 hours. It now stands at approximately $2.75 trillion.

The total liquidations in the derivatives market also surged above $500 million during this timeframe, with the majority stemming from BTC traders. However, the outlook remains bleak for altcoin investors as well.

Bitcoin Price Drops to $60K, Bulls Come to the Rescue

Bitcoin’s value fell to a local low of $60,170 earlier today, a level not seen since September 18th.

Fortunately, bullish investors quickly intervened, pushing the price back up to around $61,500.

However, much of the positive momentum gained in late September is now being questioned. The major change in market direction appears to be influenced by escalating conflicts in the Middle East. In retaliation to prior strikes, Iran launched over 200 ballistic missiles at Israel. While most were intercepted, Israel has announced its intention to respond.

Market observers are anxious that an all-out war could adversely affect cryptocurrency prices, prompting them to move away from riskier assets like Bitcoin. Conversely, gold prices are on the rise.

Investors are literally selling #Bitcoin to buy #gold as geopolitical tensions spike. pic.twitter.com/ib7c38K75K

— jeroen blokland (@jsblokland) October 1, 2024

Altcoins Face Severe Declines

The decline is not limited to Bitcoin. In fact, Bitcoin dropped approximately 4% today, while altcoins are experiencing much steeper losses.

For instance, major cryptocurrencies like ETH, SOL, XRP, BCH, TON, ADA, and DOT are down between 6% and 10%.

The only exception to this trend appears to be SUI, which is holding steady.

Today’s worst performer is Arweave (AR) with a drop of 15.7%, followed closely by Starknet (-14.9%) and Notcoin (-14.4%).

It remains to be seen how the ongoing geopolitical tensions will unfold and their effect on the cryptocurrency markets.