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Crypto Market Under Threat: Potential $1 Trillion Collapse

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by Giorgi Kostiuk

a year ago


  1. A New Fall in the Crypto Market
  2. Impact of a Potential Crash and Post-Disaster Scenario
  3. Conclusion

  4. 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. 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?

    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 A lot of money will be withdrawn from the market.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. 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.

    These signs indicate the possible start of a major price decrease in cryptocurrencies.Alan SANTANA

    Impact of a Potential Crash and 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.

    Altcoins might be the most affected in the event of a market crash.

    Conclusion

    The crypto market once again faces the threat of a significant decline. The predictions of Alan SANTANA teach us to be prepared for potential changes and to closely monitor market indicators. Whether these predictions come true or not, the market is headed for a period of high volatility.

    Financial markets, including the cryptocurrency market, remain prone to significant fluctuations. Regardless of analysts' predictions and current market trends, investors should exercise caution and be prepared for any changes.

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