Crypto Market Plunges, 165,500 Liquidated, Bitcoin Breaks Key Support

Crypto Market Plunges, 165,500 Liquidated, Bitcoin Breaks Key SupportAmidst heightened geopolitical tensions, speculative assets like cryptocurrencies are facing another sell-off. By the evening of October 2nd, Bitcoin had fallen over 4%, Ethereum dropped nearly 7%, and Cardano (ADA) declined nearly 9%

Crypto Market Plunges, 165,500 Liquidated, Bitcoin Breaks Key Support

Amidst heightened geopolitical tensions, speculative assets like cryptocurrencies are facing another sell-off. By the evening of October 2nd, Bitcoin had fallen over 4%, Ethereum dropped nearly 7%, and Cardano (ADA) declined nearly 9%. The number of liquidations in the cryptocurrency market has surpassed 160,000 in the past 24 hours.

According to coinglass data, as of the evening of October 2nd, the cryptocurrency market witnessed 165,500 liquidations over the past 24 hours, totaling $555 million. Of this, $482 million came from long positions, while over $73 million resulted from short positions.

Bitcoin concluded September's rebound with a continuous decline, shattering investor optimism about entering the historically best performing month for cryptocurrencies. Statistics show that since 2013, Bitcoin has closed October with a decline on just two occasions.

"After the strong rally since early September, technical indicators now suggest Bitcoin is facing headwinds, stated Brian Strogratz, head of spot trading at major cryptocurrency brokerage FalconX. "The Stochastic RSI is in overbought territory, and a large number of Bitcoin holders on exchanges are starting to sell."

Chris Newhouse, head of research at Cumberland Labs, also shared his perspective, saying, "After hitting the $65,000 resistance level, I have observed weakening demand for spot Bitcoin. Many traders are beginning to take profits."

Since its inception, Bitcoin has experienced volatile price swings, with sharp rallies and declines being almost the norm. The market faces multiple risks that cannot be overlooked.

"As a newly emerging digital asset, Bitcoin's price volatility is influenced by numerous factors, including market sentiment, macroeconomic conditions, technological innovation, and regulatory policies," analyzed Yu Jianing, co-chair of the Blockchain Special Committee of the China Communications Industry Association and honorary chairman of the Hong Kong Blockchain Association. "Governments' attitudes and policies towards cryptocurrencies are constantly evolving, and any new regulations could have a significant impact on Bitcoin's price."

Simultaneously, shifts in the global macroeconomic environment, such as interest rate changes, inflation rates, and international trade relations, can also influence the value of Bitcoin and other cryptocurrencies. Moreover, current cryptocurrency trading platforms and wallets still face risks like hacking and security vulnerabilities.

Therefore, investors need to approach the cryptocurrency market with caution, invest rationally, manage risks, avoid blindly following the crowd, and prevent potential investment losses.