
A crypto analyst warned there was a high likelihood of a “flash crash” after the broader crypto market clocked significant gains over the past month.
“If corrections happen, and they will, and a flash crash is likely to happen, inducing a massive liquidation crash across Altcoins,” MN Capital founder and crypto analyst Michael van de Poppe said in a Nov. 3 X post.
Buying opportunity awaits, says analyst
“Don’t panic. Use those as an opportunity to get into the markets. They are a blessing,” van de Poppe added.
A total of $618.7 million was liquidated from the crypto market over the past 24 hours. Source: CoinGlass
An increasing number of crypto market positions means that even a small pullback could trigger a large amount of liquidations.
In the past 24 hours, about $618.7 million was liquidated from the entire crypto market after South Korean President Yoon Suk-yeol’s declaration of martial law and then quick reversal.
Of that total, $85.8 million in Bitcoin positions and $61.5 million in Ether positions were liquidated, according to CoinGlass data.
The prices of Bitcoin, Ether, XRP , and other cryptocurrencies dropped after the emergency declaration but have since clawed back some losses, recovering 2.4%, 3.3% and 9.2%, respectively, according to CoinMarketCap.
Bitcoin was trading at $96,700 at the time of publication. Source: CoinMarketCap
Recent crypto trading surge in South Korea
It came only a day after 10x Research said on Dec. 3 that retail trading volumes for crypto assets in South Korea had surged to $18 billion in the previous 24 hours, outperforming the country’s stock market by 22%.
Meanwhile, it was recently reported that Bitcoin whales were standing on the sidelines with their holdings as BTC continued to tease and retrace, hovering just below $100,000.
“Although there is currently no immediate selling pressure, the rising inflow of Bitcoin into exchanges highlights a potential risk of future sell-offs,” CryptoQuant contributor Onat Tütüncüler said in a Nov. 2 analyst note.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.