Bitcoin Experiences Sharp Decline Amid Market Tensions and Liquidations, Traders Cautious as October Begins

Bitcoin’s price took a sharp dip on Tuesday morning. This drop came at the start of a month that traders usually expect to be profitable. Right now, Bitcoin sits at $62,798, having fallen as low as $62,633. That’s nearly a 2% decrease in just 24 hours.

U.S. stocks also faced a steep sell-off, and oil prices rose after the White House warned of a potential Iranian attack on Israel. Historically, tensions in the Middle East have led to sell-offs of riskier assets like crypto and stocks.

In the last day, over $250 million in futures positions were liquidated across all cryptocurrencies, according to CoinGlass data. Most of that—about $200 million—came from long positions that were betting on price increases. When a long position gets liquidated, it means the trader has lost their bet and their position is closed.

Ethereum also took a hit. It’s now trading at $2,545 per coin, down nearly 3% in the past day. Solana, the fifth largest digital asset, lost even more value, dropping almost 4% and currently priced at $150.75.

October is often called "Uptober" by traders because, in the past, stocks and crypto have seen price increases during this month. In contrast, September usually leads to lower prices. Last month, Bitcoin’s price surged, and some analysts expect this upward trend to continue. Over the last 30 days, Bitcoin has risen by 9%, thanks in part to the Federal Reserve cutting interest rates.

In other news, the crypto exchange Gemini has left the Canadian market, following Binance and OKX. This move comes after Canadian regulators introduced new restrictions on crypto exchanges back in February 2023. These rules enforce stricter standards for custody of funds and providing leverage. Now, exchanges must submit daily financial data to the Canadian Securities Administrators (CSA) and need explicit permission to offer stablecoins to customers.

As October begins, Bitcoin faces a cautious outlook. This aligns with China’s Golden Week holiday, which started on October 1. This annual seven-day celebration marks China’s National Day and usually results in lower trading activity across global markets, including cryptocurrencies, as traders and businesses take a break. Analysts predict a slow market this week and warn that Bitcoin could see a 5-10% correction before any major movements.

Moo Deng (Moodeng), a new meme coin inspired by Thailand’s pygmy hippo star, is experiencing a rapid decline. Despite this fall, some big holders remain hopeful for a rebound. After hitting a market cap of $322.7 million on September 28, Moodeng has dropped 50% to $0.18 in just three days, with a 26% drop in the last 24 hours alone. One early buyer, known as “Trader Db3P,” invested $800 in Moodeng on its launch day, September 10.