A cryptocurrency analyst has warned that a “flash crash” is likely after the broader cryptocurrency market saw significant gains over the past month.
“It’s likely that a correction will occur and that will lead to a flash crash, leading to a massive liquidation crash across altcoins,” MN Capital founder and cryptocurrency analyst Michael van de Poppe said in a November 3 X post.
Analysts say buying opportunities await.
“Don’t panic. Use this as an opportunity to enter the market. They are a blessing,” added van de Poppe.
A total of $618.7 million was liquidated from the cryptocurrency market in the last 24 hours. source: Coin Glass
The increasing number of cryptocurrency market positions means that even a small decline can trigger large amounts of liquidation.
In the past 24 hours, approximately $618.7 million was liquidated from the entire cryptocurrency market due to President Yoon Seok-yeol’s declaration of martial law and a quick reversal.
Of this, $85.8 million was liquidated from Bitcoin (BTC) positions and $61.5 million from Ether (ETH) positions, according to CoinGlass data.
Prices of Bitcoin, Ethereum, XRP (XRP) and other cryptocurrencies fell after the emergency declaration, but have since recovered losses by 2.4%, 3.3% and 9.2%, respectively, according to CoinMarketCap.
At the time of publication, Bitcoin was trading at $96,700. Source: CoinMarketCap
Recent surge in cryptocurrency transactions in Korea
This comes a day after 10x Research reported on December 3 that retail trading volume for cryptocurrency assets in South Korea surged to $18 billion in the past 24 hours, outperforming the Korean stock market by 22%.
relevant: Wrapped Bitcoin Flash crashes to $5,000 on Binance exchange.
Meanwhile, there have been recent reports that Bitcoin whales are sitting on the sidelines with their holdings as BTC continues to tease and retrace, hovering just below $100,000.
“While there is currently no immediate selling pressure, the increased Bitcoin inflows to exchanges highlight the potential risk of future selling,” CryptoQuant contributor Onat Tütüncüler said in an analyst note on November 2.
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This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.