Crypto Crash: Analyst Warns of 2021’s Largest Liquidation Event

• Crypto analyst Michaël van de Poppe is analyzing Bitcoin’s (BTC) recent crash which has brought the rest of the digital assets market down with it.
• Van de Poppe believes that the markets are currently undergoing the largest liquidation event of the year.
• He suggests that one possible reason for BTC’s sharp decline could be that SpaceX sold its Bitcoin after reducing its value by $373 million in 2022 and 2021.

Crypto Analyst Discusses ‘Largest Liquidation Event in 2023’

Crypto trader Michaël van de Poppe is looking into Bitcoin’s (BTC) latest crash which has pulled down other digital assets as well. He believes this to be the most massive liquidation event of the year and has outlined two scenarios – a further downward grind or a return to form with news releases such as Grayscale investing coming up.

Open Interest on BTC Not Seen Since November 2022 and March 2023

Van de Poppe also points out that open interest on BTC has not been seen since November 2022 and March 2023, indicating a reset in trading activity for the coin. The 4-hour Relative Strength Index (RSI) also points to an extended bearish period if trends continue, he says.

SpaceX Sell-Off Could Be A Factor

The analyst then looks at a possible explanation for BTC’s 7.8% fall over 24 hours – namely, speculation that SpaceX sold their holdings of Bitcoin after seeing its value reduced by $373 million over two years. This would have had an impact on prices across all cryptocurrencies given their interconnectedness with each other and BTC’s status as a leader in terms of overall market capitalization.

A Difficult Year for Crypto Markets

Overall, this downturn marks yet another difficult year for cryptocurrency markets, with double digit declines from both January through April and now again during August 20203 proving difficult to recover from or predict future movements without more fundamental drivers being identified outside price action itself.


In conclusion, while exact causes remain uncertain at this stage, it appears likely that factors such as SpaceX selling off their holdings could be having an impact on crypto prices across the board as BTC struggles to find sustained support levels in what is proving to be one of its most volatile years ever recorded thus far.

Crypto Crash: Analyst Warns of 2021’s Largest Liquidation Event
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