On October 2, the cryptocurrency market traded in the red as the total market Capital fell more than 5% to $2.25 trillion at the time of writing.
Bitcoin [ BTC ] failed to resist bearish pressure and fell to a seven-day low below $61,000.
Most altcoins also erased recent gains, with Ethereum [ ETH ] down 6.5% to trade at $2,473 at the time of writing.
Binance Coin [BNB] and Solana [SOL] also fell 4.9% and 5.7% respectively, while Ripple [XRP] dropped below $0.60 after falling 3.6%.
Dogecoin [Doge] recorded the biggest drop among the top 10 cryptocurrencies by market Capital after falling 9% to trade at $0.108 at the time of writing.
Similarly, traditional financial markets also saw declines, with Japan's Nikkei 225 index falling 2.5%, according to Google Finance.
Crypto Market Reacts to Geopolitical Tensions
Escalating geopolitical tensions in the Middle East after Iran launched hundreds of missiles towards Israel have made these losses common.
This event has traders worried about the performance of risk assets.
In times of uncertainty, investors often turn to safe-haven assets like gold, rather than risky assets like cryptocurrencies.
For example, when crypto prices fell, gold only suffered a small loss of less than 1%.
Data from Coinglass shows that over $500 million was liquidated from the market in the past 24 hours, with $450 million of this being Longing positions. These liquidations affected over 155,000 traders.
Bitcoin and Ethereum saw the largest liquidations, worth $140 million and $110 million, respectively. According to Coinglass, the largest liquidation occurred on Binance, where a trader was liquidated for more than $12 million.
Crypto ETFs Record Capital Flows
Data from SoSoValue shows that on October 2, spot Bitcoin ETFs in the United States dropped by $242 million, the highest level since early September.
Fidelity’s Bitcoin ETF saw the largest Capital of $144 million. All other Bitcoin ETF products recorded negative or zero outflows, except for BlackRock.
iShares Bitcoin Trust ETF Continues Positive Chain with $40 Million in Inflows.
The Ethereum ETF also recorded negative outflows of $48 million, the highest in more than a week.
The negative reading comes as the Bitcoin Fear and Greed Index dropped to 42, its lowest level in more than two weeks, as fear grips the market.
