As the cryptocurrency market continues to experience significant volatility, a prominent crypto analyst has warned of the likelihood of a “flash crash” that could trigger a massive wave of liquidations.
Looming Threat of a ‘Flash Crash’
According to Michael van de Poppe, the founder of MN Capital and a respected crypto analyst, the recent surge in the broader crypto market has set the stage for a potential market correction. “If corrections happen, and they will, a flash crash is likely to happen, inducing a massive liquidation crash across Altcoins,” he cautioned in a recent X post.
The analyst’s warning comes as the crypto market has seen an influx of new positions, which means that even a small pullback could lead to a large amount of liquidations. In the past 24 hours, the entire crypto market experienced $618.7 million in liquidations, with $85.8 million in Bitcoin (BTC) and $61.5 million in Ether (ETH) positions being liquidated, according to data from CoinGlass.
Market Recovery and Whales’ Cautious Stance
Despite the recent liquidations, the prices of major cryptocurrencies, including Bitcoin, Ether, and XRP, have managed to claw back some of their losses, recovering 2.4%, 3.3%, and 9.2%, respectively, according to CoinMarketCap. However, it was recently reported that Bitcoin whales, or large holders, have been standing on the sidelines with their holdings as the price of BTC continues to fluctuate just below the $100,000 mark.
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