Why is the crypto market down today?

Traders’ hopes for a bullish start to “Uptober” were quickly dashed as the crypto and stock markets sold off at the opening bell.

The entire crypto market dipped on Oct. 1 as rising geopolitical tensions in the Middle East, increasing long liquidations and a sell-off in US equities appeared to cool investor enthusiasm for “Uptober.”

Over the last 24 hours, the total crypto market capitalization dropped by over 1.3% to about $2.22 trillion, and stocks pulled back.

The instability witnessed in equities and digital assets on Oct. 1 follows reports of a possible escalation in the Middle East between Iran, Lebanon and Israel.

The United States has indications that Iran is preparing to imminently launch a ballistic mi*"ile attack against Israel, according to Disclose.tv.

Source: Unusual_Whales

Israeli Prime Minister Benjamin Netanyahu stated that the actions taken so far “will not be enough,” as reported by CNBC. As oil prices continue to spike, they would likely push inflation higher, limiting the US Federal Reserve’s ability to continue cutting interest rates.

One hour after Wall Street opened on Oct. 1, the S&P 500 was down 1.1%, while the Dow Jones index dropped 302 points, or 0.7% The Nasdaq Composite index pulled back 1.4%.

24-hour performance of US equities Source: Financial Visualizations

Similarly, crypto prices displayed high volatility, with Bitcoin

BTC

tickers down

$61,446.64

dropping 2.6% over the last 24 hours to trade at $61,503 before recovering to $62,557 at the time of publication.#IranianMissilesPlummetsBTC #BTCUptober #BTCPredictedNewATH #BTCReboundsAfterFOMC