Gold price gained in value in the past 24 hours while Bitcoin price declined around 4 percent as Iran attacked Israel in an escalating Middle East geopolitical crisis.
Bitcoin BTC $93 717 24h volatility: 0.4% Market cap: $1.86 T Vol. 24h: $29.91 B price closed the first day of the highly anticipated October in a bearish outlook, after slipping over 3 percent to trade at about $61,729 on Wednesday, during the mid-London session. The flagship coin has now retraced below the 200-day Moving Average (MA), suggesting the bears are gradually gaining ground despite the September bullish rebound.
Following the notable Bitcoin price drop in the past 24 hours, the altcoin industry followed the same path, leading to a 5.4 percent decline in the total crypto market cap. Consequently, more than $526 million was liquidated from the crypto-leveraged market, with more than 85 percent involving long traders.
Top Reasons Why Bitcoin Price Dumped
The crypto market registered notable losses in the past 24 hours following Iran’s attack on Israel for the first time with long-range ballistic weapons. While Iran has said that the attacks are over from its side unless the Israeli government, with the help of the United States, retaliates, investors have been fleeing to the so perceived as global safe havens led by Gold.
Investors are literally selling #Bitcoin to buy #gold as geopolitical tensions spike. pic.twitter.com/ib7c38K75K
— jeroen blokland (@jsblokland) October 1, 2024
According to the latest market data, the US spot BTC ETFs registered the highest cash outflows since early September on Tuesday, of about $242 million. The highest amount of cash outflow on Tuesday came from Fidelity’s FBTC of about $144.67 million, closely followed by ARK 21Shares Bitcoin ETF (ARKB) with about $84 million.
Nonetheless, BlackRock’s IBIT continued with its Bitcoin accumulation bid, with a net cash inflow of about $40.84 million. According to the latest market data, more than 5.9k Bitcoins, worth more than $365 million, were deposited in the Binance Holdings exchange alone in the last 24 hours.
Worth noting that more investors are taking advantage of the current Bitcoin price dip to accumulate more coins. More than 61 percent of traders on the Binance exchange have entered long positions on Bitcoin in the past 24 hours.
Bigger Market Picture
BTC price has been trapped in a bearish consolidation since March, despite the notable accumulation from the US spot BTC ETFs. According to a popular analyst Peter Brandt, Bitcoin price should be considered in a macro falling trend unless it consistently closes above $71k in the near term.
The recent rally in Bitcoin did NOT disturb the 7-month sequence of lower highs and lower lows. $BTC
Only a close above 71,000 confirmed by a new ATH will indicate that the trend from the Nov 2022 low remains in force pic.twitter.com/lFO9A20VPD— Peter Brandt (@PeterLBrandt) October 2, 2024
Although Bitcoin price has lagged behind the Gold bull run in the recent past, Wall Street analysts believe a major crypto uproar is on the horizon. Moreover, the US Federal Reserve has signaled more interest rate cuts as inflation gradually declines with a low rate of unemployment.
Additionally, the upcoming 2024 US general election will play a crucial role in the overall crypto bull run, which is expected to extend in 2025.
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