Tensions in the Middle East sow fear in the cryptocurrency market
The financial markets started October in turmoil, and the cryptocurrency market was not spared. According to Ryan Lee, chief analyst at Bitget Research, the current geopolitical crisis in the Middle East has directly impacted Bitcoin dynamics. This volatility, amplified by the massive liquidations observed in recent days, has sowed panic among investors.
Ryan Lee explains that the domino effect was quick. In just five days, Bitcoin fell 4.8%, reflecting widespread uncertainty in global markets. The conflict, which shook traditional stock markets, caused a decline in trading volumes and a sharp decline in investor sentiment. According to Bitget data, more than $700 million in positions were liquidated, a situation that exacerbated the price drop in the cryptocurrency market.
Despite this, Ryan Lee believes that it is premature to draw definitive conclusions for the month of October. Bitcoin is still holding above the $60,000 threshold, a key support, and could rebound further if the geopolitical situation stabilizes. However, caution remains in order as investors continue to adopt a wait-and-see approach to global tensions.
Bitcoin and altcoins under pressure: what does Bitget data say?
Ryan Lee, in his report published by Bitget Research, emphasizes that Bitcoin is not the only victim of current tensions. The altcoin sector has also been affected, with mixed performance for major assets. Solana and Cardano, two of the most closely watched cryptocurrencies in the industry, are facing general pressure as they continue to build a strong foundation for the future.
According to data collected by the Bitget team, Solana saw a notable decline despite its technological advancements in the decentralized finance (DeFi) sector. Lee mentions that over 77 million SOL are currently locked in various protocols, creating a scarcity that could support long-term upside. However, in the short term, Solana remains vulnerable to overall market movements.
For its part, Cardano, although considered undervalued at $0.34, continues to attract interest thanks to its decentralized governance. Lee points out that the Cardano community recently voted for further improvements via the Chang hard fork, which could strengthen its appeal to investors in the medium to long term.
Moral of the story: When missiles fall, even cryptos stumble
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