The post Crypto Flash Crash Ahead: Expect 20-30% Altcoin Declines Before Year-End appeared first on Coinpedia Fintech News
Right now, the Bitcoin market is in an extremely bullish phase. At any moment, it could touch the milestone of $100K. Since November 5, the Bitcoin market has climbed by 45.65% and the Altcoin market by 46.57%. Many expect that the entire crypto market may experience massive bullish momentum in the coming months. However, a recent post by crypto expert Michael van de Poppe indicates that it is better not to adopt an excessively optimistic approach about the immediate future of the crypto market. Why? Read on to learn more!
Crypto Expert Predicts BTC Flash Crashes
What is a flash crash? It is nothing but a sudden price drop of over 5 to 10% in a single day. For its nature of unpredictability, it can create havoc in any market.
Michael predicts that the Bitcoin market may witness at least 4 to 6 flash crashes before the end of this year. Highlighting the unpredictable nature of these events, the expert points out that it is nearly impossible to predict the exact timing of each crash, but he asserts that these are absolutely inevitable.
At the start of November 5, the price of BTC remained at a low of $67,848.59. By November 11, it touched a peak of $88,634.15, influenced by the fresh bullish nature the entire crypto market has gained post the US election. Between November 12 and 18, the market fluctuated mainly within the range of $91,079.51 and $87,339.55. On November 19, the BTC market broke above the range. Since then, it has surged by around 9.40%. Now, the price stands at $98,975.41.
Altcoin’s Reaction to Bitcoin Flash Crashes: What Should We Expect
Michael claims that during the Bitcoin flash crash events, the Altcoin market may drop by at least 20 to 30%. This indicates that these events could affect the entire crypto market.
Currently, the total market cap of the Altcoin market stands at $1.28T. At the start of November 5, it stood at $873.78B. Since then, the market has grown by over 46.57%.
Post-Bitcoin Flash Crash Scenario: An Opportunity for Investors?
The crypto expert notes that the Bitcoin market may enter into a period of consolidation or stabilisation after these crashes. Meanwhile, pointing at the potential emergence of market opportunities in the Altcoin market during the post-crash environment, he states that the Altcoin sector could witness a massive bullish rally after the crashes.
FLASH CRASH! What do you mean?Well, #Bitcoin is going to take liquidity on lower levels, it will.There will be crashes of 5-10% on a day.#Altcoins might fall 20-30%, which are the days you should activate your entries.However, after such a flash crash on Bitcoin, that's… pic.twitter.com/DTbIcs4Kob
— Michaël van de Poppe (@CryptoMichNL) November 21, 2024
Why Allocation During Dips Matters
Michael advises that crypto traders should use the price drops expected in the Bitcoin and Altcoin markets during the crashes as buying opportunities. He claims that proper allocation during these events can set up strong gains when the markets rebound.
In conclusion, flash crashes may sound alarming, but they offer unique opportunities for traders who are well-prepared.
