The cryptocurrency market had a bit of a downturn on Monday, with its total value sitting at about $1.13 trillion. Bitcoin (BTC) struggled to break past $28,000 recently and was trading at around $27,848 during London’s early trading hours on Monday.
Other cryptocurrencies like Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) also faced losses due to a drop in trading activity.
Global Events Affecting Crypto
The crypto market’s performance is also being influenced by some big global issues. Ongoing conflicts between Gaza and Israel have caused a lot of damage, displacing many families and causing tragic loss of life. Additionally, the Russia-Ukraine conflict is showing how cryptocurrencies can be used to provide aid quickly in areas that need it.
However, these global events have led investors to gravitate towards war-related stocks and speculate on oil prices as Middle Eastern nations find themselves in a precarious position. Notably, oil prices surged by about 4.5 percent due to heightened tensions among oil producers and divisions among nuclear superpowers.
Options Expiry Adds to Market Volatility
Adding to the market’s ups and downs, roughly $730 million worth of Bitcoin and Ethereum options expired last Friday. The data suggests that more traders are choosing call options instead of put options, which shows they have a positive outlook for October. However, since more valuable options will expire later in the month, the market is getting ready for the possibility of more ups and downs.
A Complex Mix of Factors
All these factors, like global events, market predictions, and the way the crypto market naturally behaves, are all mixed together and affecting cryptocurrency values. As traders and investors deal with these things, the crypto market is trying to find stability in a world that’s changing fast.
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