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A $1 Trillion Crash Threatens The Crypto Market According To An Expert!

Sun 01 Sep 2024 ▪ 4 min read ▪ by Luc Jose A.
Getting informed Trading

The crypto market is becoming increasingly unstable. Despite a slight recovery, which has instilled confidence among investors, a shadow once again looms over the future of digital assets. Indeed, Alan SANTANA, one of the most renowned analysts in the crypto field, predicts a spectacular $1 trillion collapse in market capitalization. So, what are the factors that could trigger such a fall?

Un marché financier en chute libre avec une ambiance sombre et inquiétante

A new fall in the crypto market?

Alan SANTANA, an influential figure in the crypto community, has warned that the crypto market could be on the brink of a drastic fall. According to SANTANA, Bitcoin, which accounts for a significant share of the total market capitalization, is about to enter a phase of “capitulation.” He calls this event the “Bitcoin Capitulation 2024.” A lot of money will be withdrawn from the market. This trend of massive withdrawal, according to him, is a precursor sign of a widespread price drop. Bitcoin and altcoins, which have shown relative resilience even when Bitcoin fluctuates, are now beginning to show signs of weakness.

The reasons for this pessimistic forecast are manifold. On one hand, SANTANA points to the slowdown in altcoin price increases as a key indicator. This change in dynamics could herald a major correction. The market could see its capitalization cut in half, from $2.2 trillion to around $1.26 trillion, a level not seen since 2022.

The impact of a potential crash and the post-disaster scenario

Extending his analysis, SANTANA also explores the potential repercussions of this crash on the altcoin market. He warns that, contrary to popular belief, altcoins could be the most affected by this collapse. A new bull run is not on the way. He anticipates that the fall will trigger a massive liquidation of many traders’ positions, with losses that could extend to billions of dollars in just moments. This rapid liquidation could wipe out positions and drive many investors away from the market, further exacerbating the price drop.

However, SANTANA is not completely pessimistic. In a post-crash scenario, he envisions a possible long-term recovery, especially for Bitcoin. He points out that this cycle of crash and recovery could occur within 1 to 3 weeks. This potential rebound would offer opportunities to those who are ready to weather the storm and invest in the long term.

The upcoming situation might not simply be a temporary correction but rather the prelude to a prolonged period of volatility. Massive fund withdrawals, from both Bitcoin and altcoins, indicate a loss of confidence that would worsen if the crash predictions come true. Meanwhile, institutional investors and whales would also adopt a rapid liquidation approach to protect their gains, further amplifying the fall.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.