Bitcoin Continues to Recover from Yesterday’s Drop

CoinDesk 20 Index: 1,937.99 -6.61%Bitcoin (BTC): $61,262.66 -3.99%Ether (ETH): $2,459.36 -6.58%S&P 500: 5,708.75 -0.93%Gold: $2,651.59 -0.33%Nikkei 225: 37 ,808.76 -2.18%

Bitcoin (BTC) rose above $61,500 in the morning after falling to $60,300 late yesterday as the conflict in the Middle East grew.

However, this has diminished rally hopes for the asset. Iran, which launched nearly 200 ballistic missiles at Israel yesterday, threatened a new attack, with Israeli Prime Minister Benjamin Netanyahu vowing retaliation. While BTC suffered its biggest drop in more than a month, gold rose.

Bitcoin’s decline was as high as 6% at one point, with 24-hour losses approaching 3.5%. Presto Research investors said this was the worst start to a new month for the asset.

“Last night’s BTC price action following Iran’s attack in May (BTC -4% vs. gold +0.8%) is quite confusing, especially as BlackRock is pushing BTC into a gold-like risk-off,” wrote researchers led by Peter Chung. “It’s even more confusing considering what he sees as its existence.” “The reality is that the difference in short-term price movements of these two assets reflects the maturity levels of the assets. Gold is a much more mature asset with a history of 5,000 years. BTC, on the other hand, has only a 15-year history, although it has the characteristics that make gold a good store of value.” “This means it is in the early stages of mainstream adoption and its narrative is still not fully understood.”

Crypto futures witnessed the liquidation of $450 million long positions in the last 24 hours as bitcoin’s decline led to losses among major tokens.

CoinGlass data shows bitcoin investors lost more than $122 million, while ether investors lost nearly $100 million. Memecoin PEPE suffered an unusually high liquidation of $10 million. Data shows that approximately 86% of all futures bets are in an uptrend.

Investors were positioning for higher prices in the coming weeks as October has traditionally favored BTC, resulting in negative returns only twice since 2013.

Short-term holders (STHs), who transferred $3 billion worth of bitcoin to exchanges in the last two days, recorded huge losses. STHs have purchased approximately 100,000 BTC since September 19, when bitcoin was trading at around $62,000. Source: glassesnode