Several factors, including a weighty macro week in the United States and geopolitical tensions in the Middle East, contributed to the over 3% decline in Bitcoin price today.
In anticipation of a significant macroeconomic week in the United States and geopolitical tensions in the Middle East, investors engaged in panic selling, resulting in a more than 3% decline in the price of bitcoin on Monday. $200 million in crypto liquidations were recorded in the crypto market, with roughly $150 million in long liquidations.
Amidst altseason sentiment, major altcoins demonstrate a comparatively stronger resistance to decline.
Reason for Bitcoin price Decline Today
Today, the Bitcoin price plummeted by over 3% to a low of $63,249. This has resulted in Bitcoin enthusiasts losing their grip on the market. The Japanese Nikkei 225 index experienced a nearly 5% decline following the announcement by upcoming Prime Minister Shigeru Ishiba that elections would be held after October. This triggered the initial frantic selling. The news resulted in a surge in Japanese government bonds and a strengthening of the Japanese yen.
Today, the Crypto Fear & Greed Index remains in “greed” at 61, indicating that the general sentiment remains robust. The sharp decline in bitcoin price also sparked speculation about an altseason, as the prices of major altcoins, including ETH, SOL, and XRP, decreased by just over 1%.
Additionally, the assassination of Hezbollah leader Hassan Nasrallah by Israel has exacerbated tensions in the Middle East. The Israeli military continues to conduct airstrikes in Lebanon, while Israeli Defense Forces (IDF) special forces conduct assaults on Hezbollah tunnels. Additionally, they asserted that Fateh Sherif, the head of the Lebanon Branch of the Hamas terrorist organization, was slain in an airstrike.
🔴 Fateh Sherif, Head of the Lebanon Branch in the Hamas terrorist organization, was eliminated in a precise IAF strike.
Sherif was responsible for coordinating Hamas’ terror activities in Lebanon with Hezbollah operatives, as well as Hamas’ efforts in Lebanon to recruit… pic.twitter.com/nEwIdOnp6o
— Israel Defense Forces (@IDF) September 30, 2024
The sell-off is triggered by Heavy macro week in the US
The week will be marked by significant macroeconomic events in the United States, beginning with the upcoming appearance of US Federal Reserve Chair Jerome Powell later today. It will occur after Tuesday’s ISM Manufacturing PMI data release and the employment opening at JOLT. This has also precipitated a decline in the pricing of Bitcoin today.
The U.S. Department of Labor will disclose Friday’s non-farm payrolls and unemployment rate data for September. Market participants anticipate the Federal Reserve will implement an additional 50 basis points of rate cuts in response to weaker employment data.
Uncertainty in the stock and crypto markets is also precipitated by speeches delivered by Federal Reserve officials during the week.
The price of Bitcoin (BTC) has decreased by 3% over the past 24 hours, and it is currently trading at $63,641. The 24-hour low and high are $63,273 and $66,069, respectively. The trading volume has also increased by 94% in the past 24 hours.
The total open interest in BTC futures has decreased by over 1% in the past 24 hours, according to Coinglass data. CME was the primary selling source, as BTC futures OI experienced a decline of over 3%. Investors’ purchases are indicated on the Binance and Bybit cryptocurrency exchanges.
In the interim, CoinShares data indicated that digital asset investment products experienced a total inflow of $1.2 billion last week, with the anticipation of further dovish monetary policy from the Federal Reserve. $1 billion in inflows were observed in Bitcoin, while $87 million in inflows broke Ethereum’s five-week negative trend.
