On October 1, 2024, the cryptocurrency market experienced a sharp crash, leading to substantial losses for traders. The key factors contributing to this downturn include:
1. Geopolitical tensions: The escalation of conflict in the Middle East, particularly Iran's launch of over 400 missile strikes on Israel, heightened fears of broader instability. Investors reacted by pulling out of high-risk assets like cryptocurrencies, contributing to a drop in prices.
2. Mass liquidations: Within a 24-hour period, more than $1 billion in positions were liquidated, exacerbating the decline. Bitcoin and Ethereum were particularly affected, losing over 10% and 20% of their value, respectively.
3. Bitcoin's price drop: Bitcoin fell to a low of $60,700, driven in part by remarks from the U.S. Federal Reserve suggesting potential monetary tightening.
The market remains highly volatile, with investors closely monitoring both geopolitical developments and central bank actions for potential impacts on future price movements.
