The total market capitalization of all crypto assets dropped by 6% as liquidations surpassed $550 million in the last 24 hours. 

The slump in the crypto market cap might be attributed to various factors but the most significant is the developing geopolitical tension in the Middle East. 

Two days ago, Iran fired over 400 missiles into Israeli territory seriously escalating geopolitical tensions in an already tense region. 

The Israeli authorities in response to the attacks promised a serious retaliation from their end adding to the uncertainty and increasing the chances of a full-blown conflict in the region. 

The uncertainty created by these tensions rubbed off on the crypto market as traders and investors ditched riskier assets like crypto for more stable ones. 

This dumping of crypto assets collectively led to a drop in key crypto asset prices, resulting in a dip in the total crypto market cap of all assets. 

Bitcoin, Ethereum, and BNB are all down on a 24-hour scale, exchanging hands for $60,752, $2,351, and $538 respectively. 

$556 million liquidated in 24 hours 

Coinglass, the industry’s leading liquidation source, revealed that over $556 million worth of futures contracts were liquidated in the past 24 hours. 

Bitcoin, Ethereum, and Solana witnessed liquidations worth over $143 million, $119 million, and $20 million, respectively.

86.6% or $482.2 million of the total liquidations for the day were long positions, while the remaining 13.4%or $74.6 million were shorts. 

167,802 traders were liquidated with the single largest liquidation order on Binance’s BTCUSDT pair worth $12.6 million.

Liquidations on crypto exchanges differ with Binance leading in terms of liquidation volume. 

Binance accounted for 49.1% of the total liquidations, with $273.4 million liquidated on the platform. 

OKX, Bybit, and HTX saw liquidations totaling $182.6 million, $43.3 million, and $40.2 million, respectively.

Uptober fever still strong

Despite the drop in prices of crypto assets and total market capitalization analysts and crypto enthusiasts still anticipate a bullish October for the market. 

“Uptober “ a term formed to express the optimism of a bullish rally is still being firmly used in crypto circles. 

Bitcoin the flagship crypto asset had its best September month since 2013 and analysts believe this could be an indication of a favorable year for crypto assets.