There is a possible danger to the ‘October’ rally in the cryptocurrency market as geopolitical risks intensify with rising tension between Israel and Iran.
Key Highlights:
- The Iranian missile attacks on Israel put global markets at risk.
- More than $9 million has been taken out from the market already.
- Bitcoin has fallen below $62,000, amid fears that it has failed to sustain a key level around $60,000.
Crypto Market Impact
Cryptocurrencies traditionally show growth in October, or what has been humorously called ‘Uptober,’ but the recent conflict has caused significant damage. The Iranian missile attacks on Israel occurred after Israel’s attack on Hezbollah fighters in Lebanon. In the past, conflicts of this nature upset the financial markets in a big way, and the crypto market has not escaped this reality.
Latest data from Coinglass reveals that over $ 351 million have been wiped off the market within the last 24 hours due to the conflict. Bitcoin which has been trading at an average of $65000 has plummeted and is now below $63000. This parallels another decline in Bitcoin prices earlier this year when the conflict between Israel and Iran pulled down the prices by 8%.
Sell-Off Risk and Market Correction
The conflict has variables making it likely that more people will be forced to sell their stocks with some analysts noting that this selloff is possibly going to worsen an already unstable market. As earlier noted by CoinGape, Bitcoin was set for a correction and the geopolitical event facilitated it. The $60,000 is the current psychological support level, and to which not only the bitcoins are exposed but can therefore trigger even more panic selling.
FUD and Market Sentiment
The market is at the moment characterized by Fear, Uncertainty, and Doubt, this normally leads to the selling of stocks in a given market in response to negative information. In light of the current remarce, Santiment revealed the greed of the market due to Bitcoin recovering above the $65,000 mark. What was a welcome break from FUD due to the Israel-Iran conflict might just be good for the market in the long run.
When people start to sell their assets out of fear, FOMO might well turn into FUD, and the last could bring more stability and push the bull market back up after a dip.
Conclusion
Even though euphemistically it was referred to as ‘Uptober’ proposing a series of strengths and increases on numerous markets for cryptocurrencies, the war between Israel and Iran is changing the landscape again. More turbulence and uncertainty are on the horizon but long-term strategy supporters believe FUD might lead to the next rally once the impacts of the conflict are reflected in the market.
Also, Read @ Crypto Market Takes a Hit as Israel-Iran Conflict Escalates
