Bitcoin prices plunged on Tuesday morning, the first day of the month that was historically expected to bring profits to traders.
According to CoinGecko, the price of the largest digital asset is now $62,798, after falling as low as $62,633. It is down nearly 2% in 24 hours.
US stocks too experienced a sharp decline Oil prices rose after White House policy said They expected Iran to attack Israel. Tensions in the Middle East have previously triggered sales of “risk-on” assets such as cryptocurrencies and stocks.
More than $250 million in futures positions were liquidated across all cryptocurrencies in the past day, CoinGlass data show. The bulk of this amount, $200 million, was a long position betting that the price of the digital asset would rise in the future.
In the world of derivatives, when a long is liquidated, the trader loses the bet and the position is closed.
Elsewhere, Ethereum prices fell further. It is currently trading at $2,545 per coin after plummeting nearly 3% over the past day.
And Solana, the fifth largest digital asset, has fallen further in value. The coin has fallen nearly 4% in 24 hours and is currently trading at $150.75.
October is referred to as “Uptober” by traders because of the rise in prices of stocks and cryptocurrencies in the past. On the other hand, September usually leads to a decline in prices.
However, the price of Bitcoin soared last month, and some analysts expect asset prices to continue rising.
Over the past 30 days, the largest digital coin has risen 9% on the back of the Federal Reserve's decision to cut interest rates.
Edited by Stacey Elliott.
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