Bitcoin Crash: VanEck sees an opportunity

As the price of Bitcoin (BTC) nosedives after the debacle surrounding the German government and Mount Gox, VanEck remains bullish.

Market corrections are scary situations that express fear among traders. On the other hand, while “weak hands” are cowards, brave lot take advantage of the opportunity to increase their wallet.

VanEck Warns Traders: Buy Bitcoin During Market Panic

Describing the ongoing Bitcoin crash as “4th of July deals”, VanEyck sees BTC's drop to $53,000 as a ‘buy the dip' opportunity. On the chain's platform, Santiment shares his thoughts, urging brave traders to seize the moment.

“Markets continue to bleed, and social media is now showing historic levels of FUD. It's rare for an hour to go where there are more “sells” than “buys” on crypto forums. But we've seen quite a few of these instances in the last 24 hours, including the most negative and positive comments in 2024. “Buy the anger and frustration of the people.”

In the midst of negative market sentiment, crypto researchers are seeing higher levels of fear. This guarantees that many traders suffer losses. Hundreds of thousands are getting “rekt” in the ongoing bloodshed. Coinglass, a startup data analytics platform, has reported more than $650 million in total liquidity.

Read more: Four mistakes to avoid when trading Bitcoin effectively

Anonymous trader CryptoNagato reported that this was the second largest liquidity event in the Bitcoin market after the November 2022 FTX crash. All signs point to a massive sales process between Mount Gox and the German government. Transactions trigger markets.

In a post on Thursday, German lawmaker and bitcoin activist Joanna Kottar criticized the government for acting “in haste” in selling Bitcoin. Calling the sale absurd and useless, she urged the state to follow the US and adopt Bitcoin as a reserve currency.

“Instead of holding Bitcoin as a strategic reserve currency, as has been argued in the US, our government is selling it at a higher rate. I told Michael Kretschmer, Christian Lindner and Olaf Scholz why this is not rational, but ineffective, and we will be preparing for our lecture (Bitcoin Strategies for Nation States) on October 17th at Pol- I invited them to Lobe-House with Samson Mow,” Kotar wrote.

Kotar's pro-crypto stance was demonstrated in November when she supported bitcoin as legal tender and its integration into mainstream German finance.

Whales buy BTC with discount

Meanwhile, CryptoQuant co-founder and CEO Ki Young Joo points out that whales are buying the bait and effectively becoming real contrarians. According to the report, these traders are opening long positions.

Whales in crypto are investors who hold more than 1000 BTC, which means they have the power to influence the market price due to their large portfolios. Currently, they are betting on the future rising price of Bitcoin.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

CryptoQuant's Yang Ju shares his optimism, saying, “The upside cycle is not over yet.” However, he suggested that the ongoing correction could push down the $47,000 threshold, urging spot traders to expect a strong buying trend. Looking at the weekly chart for the BTC/USDT trading pair, there is a zone of interest around the $47,000 range.

A demand zone is an area of ​​high purchasing demand. Market participants will be willing to buy Bitcoin at $47,000, successfully creating a support level that could lead to a price reversal.