Key Points
- Major altcoins STRK, AR, LDO, and CORE experienced significant losses on Oct. 2.
- These declines coincided with broader market contraction and rising geopolitical instability.
On October 2, a number of leading altcoins, namely STRK, AR, LDO, and CORE, witnessed substantial decreases due to geopolitical unrest and long liquidations impacting the cryptocurrency market.
Starknet (STRK) was at the forefront of these altcoin losses, plunging 13.4% within 24 hours. The trading volume stayed approximately at $151 million, and its market capitalization diminished by 13.75%, currently standing at $772 million.
Other Altcoins and Broader Market Conditions
In a similar fashion, Arweave (AR) declined 14.3% to $19.98, with a daily trading volume of $226 million and a market cap of $1.3 billion, marking its lowest point in the past week. Lido DAO (LDO) also took a hit, falling 12.7% and trading at $1.16. Lido’s market cap dropped to $1.03 billion, with a daily volume of $179 million. Core (CORE) followed the trend, dipping 12.4% to $0.9292, with a daily trading volume of $50.4 million and a reduced market cap of $851 million.
This sharp drop in altcoins aligned with a wider contraction in the cryptocurrency market, which witnessed its total market capitalization fall by over 5.5% to around $2.26 trillion. This downturn occurred amidst increasing geopolitical instability, including Iran’s missile strikes on October 1 and a pullback in US equities, which further weakened investor outlook for the traditionally bullish “Uptober.”
Bitcoin’s Role and Market Liquidations
Bitcoin (BTC), the market’s anchor asset, dropped 3.2% in the last 24 hours, losing nearly $4,000 and hitting a two-week low of $60,315 earlier in the day. This decline was partially driven by geopolitical developments, which spurred sell-offs in risk assets across global markets.
Despite this, Bitcoin has slightly recovered to $61,850, its price action starkly contrasts with traditional safe-haven assets like gold and oil. Gold surged 1.4% to $2,665 per ounce, nearing a record high, while crude oil spiked 7% to $72 per barrel.
Data from CoinGlass reveals the extent of market turbulence, with $453 million in long positions liquidated over the past 24 hours, compared to $72 million in short positions. This liquidation of long trades, where investors bet on price increases, added to the selling pressure, further accelerating the drop.
Bitcoin’s Future
Veteran trader Peter Brandt commented that despite Bitcoin’s rally in the last weeks of September, it remains trapped in a seven-month pattern of lower highs and lower lows. According to Brandt, only a close above $71,000, accompanied by a new all-time high, would confirm that Bitcoin’s upward trend, which began in November 2022, remains intact.
The Crypto Fear and Greed Index, a tool that measures market sentiment, dropped from 59 last week (neutral) to 42 when writing, indicating a shift toward fear as geopolitical risks spook investors.
Historically, Bitcoin has exhibited heightened volatility during stressful periods, as seen earlier this year following the Israeli-Iranian conflict, which triggered a major price correction.
The current geopolitical situation could continue to weigh on the market, particularly if the conflict escalates. Increased instability could spur further sell-offs, heightening volatility across the crypto space.