In the wake of Iran’s recent attack on Israel, the cryptocurrency market has experienced significant turmoil, reflecting a bearish sentiment and leading to nearly half a billion dollars in liquidations. On October 1, 2024, reports from local news indicated that Iran launched hundreds of ballistic missiles over Israeli cities, resulting in a bloodbath within the crypto market.
Crypto Market Bleeds $495 Million
During the attack, over 160,000 crypto traders faced liquidations totaling an astonishing $495 million in both long and short positions. The largest single liquidation took place on Binance in the BTCUSDT pair, amounting to $12.66 million.
Of the $495 million in liquidations, long positions accounted for nearly $416 million, while short positions saw $78 million in liquidations. This significant liquidation suggests a market dominated by fear, with potential for further price declines as bearish trends take hold.
Major Cryptocurrencies Hit
According to data from CoinMarketCap, major cryptocurrencies have been significantly impacted. Bitcoin (BTC) has seen a decline of over 1.85%, Ethereum (ETH) dropped by 3.2%, Solana (SOL) fell by 4.5%, and Binance Coin (BNB) decreased by 3.4% in the past 24 hours. These declines were notably pronounced following the attack by Iran.
Ethereum Whale Profits Amid Decline
Interestingly, amidst the bearish market sentiment, on-chain analytics firm Lookonchain reported that an Ethereum whale took advantage of the situation. The whale sold 29,480 ETH worth $76.8 million at an average price of $2,605, resulting in a profit of $2.34 million. This indicates potential foreknowledge of the price decline before the market downturn.
The whale’s transactions, detailed in Lookonchain’s post on X (formerly Twitter), show that they purchased 29,414 ETH for $74.46 million at an average price of $2,532 between August 27 and August 30, and subsequently staked it.
Current Price Momentum
As of the latest updates, Ethereum (ETH) is trading near the $2,480 level, having experienced a 3.5% price decline in the past 24 hours. Concurrently, its trading volume surged by 45%, indicating heightened activity among traders and investors.
Additionally, the future open interest for ETH has decreased by 4.5% over the past day, highlighting a trend of position liquidations and a prevailing caution among traders to establish new positions due to market fears.
