On October 1, 2024, the cryptocurrency market experienced a sudden crash, resulting in significant losses for traders. Below, we look at the key factors that triggered this fall:

1. Geopolitical tensions: A major reason for the sharp decline in the market was the escalation of the conflict in the Middle East. Iran launched more than 400 missile strikes on Israel, raising concerns about further escalation of the conflict. Against this backdrop, investors began to massively withdraw from high-risk assets such as cryptocurrencies, which affected the fall in prices of key assets.

2. Mass liquidations: Over $1 billion worth of positions were liquidated within 24 hours, worsening the market situation. Most of the liquidations were in Bitcoin and Ethereum, which lost over 10% and 20% of their value, respectively.

3. Bitcoin Price: During the pullback, Bitcoin hit a low of $60,700. This significant decline was also triggered by statements from the US Federal Reserve hinting at possible monetary tightening.

What to expect next?

The market situation remains extremely volatile. In the coming days, investors will be watching for further geopolitical news and central bank actions that could impact further price movements.