Although BTC and most altcoins have charted double-digit losses over the past 24 hours, CryptoQuant’s analysts warn that there might be even more volatility in the following hours as the US stock market is about to open for trading.
They argued that the Coinbase Premium Gap (CPG) will be the metric to watch in the next 24 hours or so.
The crypto market has already bled out heavily since Friday, losing more than $500 billion within this timeframe. Bitcoin’s price nosedived from $66,000 back then to just under $50,000 earlier today, with warnings about a potential decline to $40,000.
The altcoins have taken an even worse beating, with ETH plummeting from over $3,000 to $2,200, while many others, like SOL and DOGE, have posted 30-40% drops.
Most experts blame the current crash to macroeconomic factors, mostly related to the US. After all, it all started following Friday’s job report in the US that showcased a weak economy and record-setting unemployment rates.
Wall Street dumped on Friday and the pre-market activity has been quite painful as well. Consequently, CryptoQuant’s analyst (Mignolet) warned that there will be even more volatility once Wall Street opens.
They pointed to the Coinbase Premium Gap (the difference between BTC’s price on Coinbase and Binance), which could be the metric that shows whether US-based investors have been selling off their holdings. If that’s the case, Mignolet outlined two possible scenarios, both of which sound quite pessimistic.
“1. Significant price volatility is likely to occur during U.S. market hours.
2. If U.S. whales want the current price drop, the real decline has not yet begun. If not, there is a possibility of a swift rebound.”
In any way, the total liquidations over the past day have been way over $1 billion, with more than 300,000 traders wrecked. Investors should be wary at such times of enhance volatility and refrain from opening over-leveraged positions.
The post Brace for Impact: ‘The Real Decline’ Could Start During US Market Hours (CryptoQuant) appeared first on CryptoPotato.
