Crypto Market Plunges Over $100 Billion Amid Rising Yields and Geopolitical Tensions

The crypto market crash that occurred in late September was a multi-faceted event, fueled by rising bond yields and geopolitical tensions. In less than three days, over $100 billion was wiped out from the total crypto market capitalization, with roughly $150 billion erased in a single 24-hour window around September 24. Bitcoin fell to about $84,000, while Ethereum slid into the $2,670 to $2,687 range.

The 10-year US Treasury yield climbed above 5%, a threshold that historically makes investors uneasy about holding riskier assets. This, combined with Iranian President Masoud Pezeshkian's speech at the United Nations and the US delegation's walkout, added to the risk-off mood in the market.

Automated liquidations amplified the crash, wiping out roughly $450 million in long positions in a single day. Over the ten-day period, cumulative liquidations reached an estimated $7.3 billion.