Bitcoin Rebounds to $61K Amid Global Tensions

John Darbie
Photo: Finoracle.net

Latest Prices

CoinDesk 20 Index: 1,937.99, down 6.61%
Bitcoin (BTC): $61,262.66, down 3.99%
Ether (ETH): $2,459.36, down 6.58%
Nikkei 225: 37,808.76, down 2.18%

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Bitcoin regains the $61,000 mark after a slide to $60,300 on Tuesday, triggered by increased tensions in the Middle East. This volatility follows Iran's launch of approximately 200 ballistic missiles in retaliation to attacks from Israel, escalating geopolitical uncertainties. Bitcoin's dip disrupted potential momentum for an October rally, a month typically associated with positive trends for this leading cryptocurrency. Currently, Bitcoin stands over 4% lower over the last 24 hours, while the broader digital asset market, as indicated by the CoinDesk 20 Index, has shrunk by 6%.

Market analysts have highlighted the contrasting behaviors of bitcoin and gold, suggesting these reflect the assets' different levels of maturity. Gold, a long-established risk-off asset, increased by 0.8% following Iran's actions against Israel, while Bitcoin fell by 4%. This contrast underscores gold's established status as a store of value, a role it has held for over 5,000 years, whereas Bitcoin, often likened to 'digital gold,' has only 15 years of history. Presto Research notes the nascent stage of Bitcoin's mainstream adoption, stating, "Bitcoin's narrative is still evolving." Meanwhile, gold has seen a slight decrease of 0.3% in the past 24 hours, priced at $2,652.56 per ounce.

Cryptocurrency Futures

Crypto futures experienced substantial liquidations, exceeding $450 million in the past 24 hours, as Bitcoin's drop resulted in significant losses across major tokens. According to CoinGlass data, traders who predicted higher Bitcoin prices incurred losses exceeding $122 million, while those betting on Ether lost nearly $100 million. Smaller altcoins also faced heavy liquidations, totaling over $85 million, marking the highest since July. Notably, memecoin PEPE saw a noteworthy $10 million in liquidations. Data further indicates 86% of all futures positions were bullish, with many traders expecting price increases as October generally supports Bitcoin price ascensions, showing negative returns only twice since 2013.

Chart of the Day

In the past two days, short-term holders (STHs) have transferred $3 billion worth of Bitcoin to exchanges at a loss, aligning with back-to-back daily price reductions of 3.7% for Bitcoin. Sales from holders retaining Bitcoin for less than 155 days are seen as a potential threat to Bitcoin prices, as these investors often sell in a panic when prices fall below their purchase cost. Since September 19, when Bitcoin was around $62,000, STHs have acquired about 100,000 BTC.

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John Darbie is a seasoned cryptocurrency analyst and writer with over 10 years of experience in the blockchain and digital assets industry. A graduate of MIT with a degree in Computer Science and Engineering, John specializes in blockchain technology, cryptocurrency markets, and decentralized finance (DeFi). His insights have been featured in leading publications such as CoinDesk, CryptoSlate, and Bitcoin Magazine. John’s articles are renowned for their thorough research, clear explanations, and practical insights, making them a reliable source of information for readers interested in cryptocurrency. He actively follows industry trends and developments, regularly participating in blockchain conferences and webinars. With a strong reputation for expertise, authoritativeness, and trustworthiness, John Darbie continues to provide high-quality content that helps individuals and businesses navigate the evolving world of digital assets.