Crypto Markets Plunge as Middle East Tensions Flare, DEGEN Rises on Coinbase News: News of October 2, 2024
Cryptos kicked off October strong, but tensions between Israel and Iran triggered a sharp decline. Meanwhile, DEGEN surged 140% on news of its Coinbase listing.
Crypto Markets Plunge as Middle East Tensions Flare
Cryptocurrencies started October on a strong note, but the rally was cut short by escalating tensions between Israel and Iran. On Tuesday, Bitcoin (BTC) slipped 2% to $62,000, while Ethereum (ETH) dropped 3.5% to $2,500. Solana (SOL) and Polkadot (DOT) saw steeper declines, falling 5% and 7%, respectively.
October, often referred to as "Uptober," has historically been a bullish month for Bitcoin, with the cryptocurrency averaging 23% gains in 8 of the last 9 years. Analysts at QCP Capital believe this trend could continue, potentially driving BTC above $78,000 and setting new all-time highs.
Ethereum tends to perform more modestly, averaging a 5% return over the past eight Octobers. "BTC has been stuck in the $60k-$70k range for eight months now. Uptober could be the month for a breakout, especially with the US elections approaching," noted QCP Capital.
Uptober Begins With Bloodbath: Crypto Market Lost Over $500 Million in Liquidation
On October 1, Iran launched a major missile attack on Israel. This marked the second such assault this year, following a similar incident in April. The situation prompted a stern warning from Israeli Prime Minister Benjamin Netanyahu, who promised “consequences” in retaliation.
These events have plunged global markets into a state of heightened uncertainty, affecting cryptocurrencies significantly.
As tensions soared, the crypto market experienced immediate repercussions. Bitcoin’s value tumbled to just below $60,200, marking a sharp 6% decline from its previous high of around $64,000. Consequently, the market witnessed extensive liquidations, with Coinglass reporting that liquidations over the last 24 hours amounted to a staggering $523.37 million.
Fidelity Ethereum ETF records largest daily outflows since launch
The Fidelity Ethereum Fund (FETH) saw record outflows of over $25 million on Oct. 1, the largest single-day outflow among U.S.-based spot Ether ETFs, excluding the Greyscale Ethereum Trust (ETHE).
On the same day, spot Ether ETFs across nine issuers experienced a total of $48.6 million in outflows. The major contributors were FETH with $25 million, ETHE with $26.6 million, and Bitwise Ethereum ETF (ETHW) with $0.9 million.
The only ETH ETFs to record positive inflows were 21Shares’ Core Ethereum ETF (CETH) and the VanEck Ethereum ETF (ETHV), which brought in $1.2 million and $2.7 million, respectively. The rest reported no change.
Bitcoin Miner Profit Measure Fell to ‘Recent Record’ Low, JPMorgan Says
In September, Bitcoin's price and network hashrate slightly increased, while daily mining revenue and profit dropped for a third consecutive month, JPMorgan reported.
The hashrate rose 2% to 643 EH/s, but miners' average daily revenue per EH/s fell 6% to $42,100. Gross profit declined 6% to $16,100 per EH/s, marking the lowest recent level. Transaction fees remained low, contributing less than 5% of the block reward.
The market cap of 14 U.S.-listed miners rose 4%, with Hut 8 gaining 21% and CleanSpark dropping 13%. Bitcoin's volatility fell to 44% from 62% in August.
DEGEN rises 140% as Coinbase set to list
DEGEN surged 140%, reaching a market cap of $180 million following news of its upcoming listing on Coinbase. Other Base-themed meme tokens also saw a boost, with several gaining 20-60% overnight.
That’s all for today. Thanks for reading!
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