While October is a traditionally bullish month for the cryptocurrency space that between 2010 and 2023 saw an average gain of 28.7% for the cryptocurrency according to CCData, this year the month started with an aggressive sell-off.
Market data shows that Bitcoin is at the time of writing trading at $61,350 after falling nearly 4% in the last 24-hour period, erasing the cryptocurrencyâs gains over the past week and bringing its 30-day performance down to 5% after it defied its historically poor performance in September.
/2 Since 2010, $BTC average returns in September averaged -4.51%, making it the worst-performing month on record.April and November typically show the highest average returns, followed closely by October â with returns of 35.6%, 39.2% and 28.7%, respectively. pic.twitter.com/3bfu2ak71Y
â CCData (@CCData_io) September 3, 2024
The cryptocurrencyâs price dropped after Iran fired around 180 ballistic missiles at Israel in what Iranâs Revolutionary Guard Corps said was a retaliation for the assassinations of Hamasâs political leader and an Iranian commander.
The market turmoil has led to significant liquidations, with Coinglass data showing that over $540 million worth of crypto positions were liquidated in the past 24 hours alone. Long positions were particularly hard hit with over $468 million worth of longs being liquidated, as investors rushed to unwind their bets amid the rising uncertainty.
Source: CoinGlass
The broader crypto market has also been impacted, with the fear and greed index dropping to a âfearâ level after seeing a âneutralâ lever yesterday and âgreedâ late last month. The index, itâs worth noting, is based on emotional behavior in the market. When fear sets in, some investors may see a buying opportunity, while greed may be a sign the market is due for a correction.
As CryptoGlobe reported, Bitcoinâs short-term holders have seen their holdings move into a state of profit with the recent price rise, and as a result started selling their coins to the point  the amount of Bitcoin held by short-term holders to the tune of 1.31 million BTC, worth around $83 billion, which to the analyst indicates âthat fewer BTC are circulating among STHs,â a sign of âgrowing confidence in the market.â
Featured image via Unsplash.
