**Bitcoin Plunges $4,000: Markets Panic Over Middle East Conflict**
Bitcoin (BTC) plunged nearly $4,000 in less than 24 hours after Iran’s missile strike on Israel on Oct. 1. From $64,000 on Tuesday, BTC plunged to $60,000 and has now recovered to $61,700 as of Wednesday morning in Asia. However, BTC is still down 3% in a day.
**Don’t Panic!**
- Bitcoin’s Fear and Greed Index has moved from ‘greedy’ to ‘fear’ with a score of 42 (neutral).
- This drop is nothing new; BTC often fluctuates during geopolitical tensions.
- Gold and oil are up, while BTC is down, prompting a humorous comment from Samson Mow: “Imagine trying to protect yourself from war by selling#Bitcointo buy paper gold.”
**Market Analysis**
- Analysts remain calm; BTC is still in a six-month price channel.
- Veteran trader Peter Brandt says the trend will remain strong if BTC closes above $71,000.
- IncomeSharks analyst predicts another decline before a rebound later in the month.
**Other Crypto Markets**
- The crypto market cap fell 4.7%, to around $150 billion.
- Ethereum (ETH) fell nearly 8% to $2,450 before recovering slightly.
- Altcoins such as Dogecoin (DOGE), Avalanche (AVAX), and Shiba Inu (SHIB) also saw major declines.
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