In early October 2024, many cryptocurrency traders faced losses due to several factors:
1. Rising On-Chain Attacks: A surge in hacks, phishing scams, and private key compromises led to significant losses. For example, the crypto space saw several high-profile hacks in 2024, such as the BingX exchange hack, which resulted in over $52 million being stolen. Security breaches like these eroded trader confidence and caused sudden drops in market value across various cryptocurrencies.
2. Regulatory and Market Uncertainty: Regulatory actions and market instability also played a role in the volatility. In September 2024, macroeconomic conditions such as the People’s Bank of China's interest rate cuts boosted markets initially, but by early October, traders were anxiously awaiting more financial data and updates from central banks, contributing to a cautious and reactive trading environment.
3. Major Token Unlocks: In October, significant token unlocks occurred, which flooded the market with new tokens, causing price volatility. This is a common occurrence when tokens that were previously locked become tradable, often leading to selling pressure.
These elements combined to create a highly volatile environment, leading to substantial losses for many crypto traders during this period.
