Crypto Analyst Predicts A “Flash Crash” As 24-hour Liquidations Reach $618 Million

After the larger cryptocurrency market saw notable gains over the previous month, a crypto analyst cautioned that there was a high chance of a “flash crash.”

Michael van de Poppe, the founder of MN Capital and a cryptocurrency analyst, stated that “If corrections happen, and they will, and a flash crash is likely to happen, inducing a massive liquidation crash across Altcoins.”

Due to the growing number of cryptocurrency market positions, even a slight decline could result in significant liquidations.

Following South Korean President Yoon Suk-yeol's declaration of martial law and its swift reversal, over $618.7 million was liquidated from the cryptocurrency market on the last day.

CoinGlass data indicates that $85.8 million was liquidated in Bitcoin and $61.5 million in Ethereum positions.

Following the emergency declaration, the values of Bitcoin, Ethereum, XRP, and other cryptocurrencies fell, but they have since recovered part of their losses, rising 2.4%, 3.3%, and 9.2%, respectively, according to CoinMarketCap.

It happened just one day after 10x Research reported on December 3 that South Korea's retail cryptocurrency trading volumes had risen to $18 billion over the previous day, outpacing the nation's stock market by 22%.

As BTC continued to tantalize and retrace, hovering just around $100,000, it was recently reported that Bitcoin whales were standing on the sidelines with their holdings.

Onat Tütüncüler, a contributor to CryptoQuant, stated in an analyst report dated November 2 that “the increasing inflow of Bitcoin into exchanges highlights a potential risk of future sell-offs, even though there is currently no immediate selling pressure.”