‘Flash crash likely’, says crypto analyst as 24-hour liquidity hits $618 million
A crypto analyst has warned that the possibility of a “flash crash” is high after the broader crypto market posted massive gains last month.
“If corrections happen, and they will, and a flash crash can happen, it will create a huge liquidity crash in altcoins,” MN Capital founder and crypto analyst Michael van de Pop said in a November 3 X post.
The analyst says he expects a buying opportunity
“Don't panic. Use those as opportunities to enter the markets. They are a blessing,” Van de Pop added.
A total of $618.7 million was released from the crypto market in the last 24 hours. Source: CoinGlass
The increasingly volatile crypto markets mean that even a small pullback can trigger massive liquidity.
After South Korean President Yun Suk-yeol declared martial law and then quickly reversed it, $618.7 million was drained from the entire crypto market in the last 24 hours.
According to CoinGlass data, $85.8 million was spent in Bitcoin (BTC) and $61.5 million in Ether (ETH).
CoinMarketCap reported that Bitcoin, Ether, XRP (XRP) and other cryptocurrencies fell in value, but recovered some losses by 2.4%, 3.3% and 9.2%.
Bitcoin was trading at $96,700 at the time of publication. Source: CoinMarketCap
The recent rise of crypto trading in South Korea
It comes a day after 10x Research said on Dec. 3 that retail trading volumes for crypto assets in South Korea rose to $18 billion in the past 24 hours, outperforming the country's stock market by 22 percent.
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Meanwhile, Bitcoin whales are reportedly standing by their holdings as BTC continues to taunt and taunt recently as it hovers below $100,000.
“While there is no immediate selling pressure at the moment, the increasing addition of Bitcoin to exchanges highlights the risk of future selling,” CryptoQuant analyst Onat Tütüncüler said in a November 2 analyst note.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
