Market Update 3rd October 2024
By Manoj Dharra
Cryptocurrency markets nosedived on Thursday following the escalation of geopolitical
tensions after Iran launched over 180 missiles at Israel, retaliating against Israeli military
actions in southern Lebanon targeting Hezbollah and militant leaders. The market
turmoil sent Bitcoin plummeting below $60,500, erasing all gains since the US Federal
Reserve’s interest rate cut in mid-September. Major altcoins like Ethereum, Solana,
XRP, and Dogecoin also suffered, with losses ranging between 5% and 15%.
Bitcoin experienced a sharp 8.3% drop over the weekend, while Ethereum slid 5.4% to
$2,339. The global cryptocurrency market cap contracted by 3.7%, settling at
approximately $2.09 trillion within the past 24 hours.
As tensions in the Middle East escalate and market uncertainty deepens, investors are
steering clear of bullish positions, choosing to wait on the sidelines. The focus has now
shifted to the upcoming U.S. non-farm payrolls report, adding further uncertainty to the
already shaky markets.
Iran’s missile strikes on Israel on October 1—reportedly in response to Israeli ground
forces entering southern Lebanon—amplified fears of prolonged conflict, which in turn
rattled global markets, including cryptocurrencies. Adding to the pressure, the looming
U.S. presidential election in November has contributed to a cautious atmosphere among
investors.
Further compounding the sell-off, Bitcoin ETFs in the U.S. have seen significant
outflows since the start of October, with Wednesday marking a $52.9 million net
withdrawal. Tuesday recorded the largest single-day outflow since early September,
with investors pulling $242.6 million from Bitcoin ETFs, signaling a shift in market
sentiment.
Meanwhile, Bitcoin miners’ revenues in September dropped to $815.7 million, marking
the lowest level of the year so far, according to The Block. Data from JPMorgan
indicates that miners’ gross profit per block fell by 6% from August, squeezing
profitability in the industry.
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