Crypto Analyst Predicts Flash Crash: Liquidations Impact Bitcoin, Ether Prices
Crypto Analyst Predicts Flash Crash – A well-known crypto analyst has warned that there is a significant chance of a “flash crash” following the recent gains in the broader cryptocurrency market. Michael van de Poppe, founder of MN Capital, stated in an X post on November 3 that if corrections occur, a “flash crash” could trigger a massive liquidation event across various altcoins.
Flash Crash Warning Amid Crypto Market Surge
Van de Poppe’s caution comes after the cryptocurrency market has seen substantial gains over the past month. He emphasized that while corrections are inevitable, they may induce significant price drops, particularly in altcoins. According to the analyst, even a small pullback in the market could trigger widespread liquidations due to the increasing number of crypto positions held by traders.
In a follow-up statement, van de Poppe reassured traders not to panic during such corrections. He suggested that these market dips should be seen as a buying opportunity for those looking to enter the market at more favorable prices. Despite the potential for a sharp drop in prices, van de Poppe described these corrections as a “blessing” for investors.
Recent Liquidations in Crypto Market
The crypto market has already witnessed some significant liquidations. Over the past 24 hours, approximately $618.7 million was liquidated across the market after a sudden declaration of martial law in South Korea. South Korean President Yoon Suk-yeol’s declaration caused a brief panic, but the situation quickly reversed. During this period, $85.8 million worth of Bitcoin (BTC) and $61.5 million worth of Ether (ETH) were liquidated, according to CoinGlass data.
Despite the market volatility triggered by the martial law announcement, prices of Bitcoin, Ether, XRP, and other cryptocurrencies experienced a rebound. Bitcoin saw a 2.4% recovery, Ether recovered 3.3%, and XRP clawed back 9.2% of its losses, according to CoinMarketCap data.
Rising Crypto Trading Volumes in South Korea
The recent volatility also comes on the heels of South Korea’s crypto market surge. On December 3, 10x Research reported that retail crypto trading volumes in South Korea had reached a staggering $18 billion over the previous 24 hours, outperforming the country’s stock market by 22%. This surge in retail trading reflects the growing interest in cryptocurrencies in the region, contributing to the volatility seen in the market.
Concerns Over Potential Sell-offs
Meanwhile, concerns are mounting about the potential for future sell-offs, especially in Bitcoin. According to CryptoQuant contributor Onat Tütüncüler, although there is no immediate selling pressure, an increasing inflow of Bitcoin into exchanges suggests that whales may be preparing to offload their holdings, potentially leading to further price corrections.
With the market’s future trajectory uncertain, traders are advised to remain cautious and vigilant as they navigate the volatility of the cryptocurrency market.
Disclaimer: This website’s content is for informational purposes only and does not constitute financial advice, with all cryptocurrency purchases carrying inherent risks.
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