Bitcoin price saw a more than 3% fall on Monday amid panic selling by investors ahead of a major macro week in the United States and geopolitical tensions in the Middle East. The crypto market saw $200 million in crypto liquidations, with nearly $150 million in long liquidation. Major altcoins are comparatively showing stronger resistance to fall amid altseason sentiment.
Why Bitcoin Price Is Dropping Today
Bitcoin bulls are losing hold against bears as Bitcoin price dropped more than 3% to a low of $63,249 today. The initial panic selling came after the Japanese Nikkei 225 index slid nearly 5% as upcoming Prime Minister Shigeru Ishiba called for elections in October end. Japanese yen strengthened and Japanese government bonds jumped on the news.
The overall sentiment remains strong as the Crypto Fear & Greed Index stays in “greed” at 61 today. Bitcoin price falling sharply also triggered speculation of altseason as top altcoins such as ETH, SOL, and XRP prices dropped just over 1%.
Also, Israel killing Hezbollah leader Hassan Nasrallah has sparked tensions in the Middle East. Israeli military continues airstrikes in Lebanon while Israel Defense Forces (IDF) special forces raids in Hezbollah tunnels. They also claimed to have killed Fateh Sherif, head of the Lebanon Branch of the Hamas terrorist organization, in an airstrike.
Fateh Sherif, Head of the Lebanon Branch in the Hamas terrorist organization, was eliminated in a precise IAF strike.
Sherif was responsible for coordinating Hamas’ terror activities in Lebanon with Hezbollah operatives, as well as Hamas’ efforts in Lebanon to recruit… pic.twitter.com/nEwIdOnp6o
— Israel Defense Forces (@IDF) September 30, 2024
Heavy Macro Week in the US Sparks Selloff
The week will see major U.S.-related macroeconomic events, starting with US Federal Reserve Chair Jerome Powell due later today. It will follow JOLTs job opening and ISM Manufacturing PMI data release on Tuesday. This has also sparked a selloff in Bitcoin price today.
On Friday, the U.S. Department of Labor will release non-farm payrolls and unemployment rate data for the month of September. Market participants expect jobs data to come in lower to fuel another 50 bps rate cut by the Federal Reserve.
The week also sees speeches by Fed officials, triggering uncertainty in the stock and crypto markets.
BTC price fell 3% in the past 24 hours, with the price currently trading at $63,641. The 24-hour low and high are $63,273 and $66,069, respectively. Furthermore, the trading volume has increased by 94% in the last 24 hours.
Coinglass data shows total BTC futures open interest also dropped more than 1% in the last 24 hours. The major selling came from CME, with BTC futures OI falling over 3%. Binance and Bybit crypto exchanges indicate buying by investors.
Meanwhile, CoinShares data reported that digital asset investment products saw a total inflow of $1.2 billion last week, with expectations of continued Fed dovish monetary policy. Bitcoin saw inflows of $1 billion, and Ethereum broke its five-week negative trend with inflows of $87 million.
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