$618 Million Liquidated in 24 Hours
In the past 24 hours, the crypto market faced massive turbulence, with liquidations totaling $618.7 million. The liquidations were driven by high leverage and market panic, amplified by South Korean President Yoon Suk-yeol’s declaration of martial law and its swift reversal. Bitcoin positions accounted for $85.8 million of the total liquidations, while Ether contributed $61.5 million. The sudden political developments rattled markets, causing sharp price declines before partial recoveries.
Analyst Sees Flash Crash as a Chance to Buy
Michael van de Poppe, founder of MN Capital, warned of a probable flash crash in a post on X on Nov. 3. He said this was due to the heavy leveraging in the market, which creates vulnerability to liquidation cascades. “Don’t panic. Use those as a blessing to enter the markets,” van de Poppe reiterated, to reassure about long-term growth despite temporary turbulence. His advice is indicative of optimism that such corrections offer a window to buy assets at discounted prices.
South Korean Retail Trading Surge
Meanwhile, South Korea has become a hotbed for crypto trading. According to 10x Research, the country’s retail trading volumes for crypto assets reached $18 billion on Dec. 3, beating the stock market by 22%+. The sharp rise in trading underlines the popularity of digital assets in the region, even as the world remains uncertain.
Bitcoin Whales Exercise Caution
Nevertheless, the whales of Bitcoin seem not to take any part in such activity. Although the holders are not putting any selling pressure, the Bitcoin inflow has increased, which shows a warning signal of further sell-offs. Onat Tütüncüler, a CryptoQuant analyst, expressed that even though the market has momentarily balanced, one should look into the growing inflow of assets in the exchanges.
Outlook: Volatility and Opportunity
The crypto market remains in the grip of volatility, but analysts keep their long-term outlook bullish. The recent liquidations and price corrections serve as an indication of how high-risk crypto investing can be, while at the same time serving as opportunities for strategic entry. With the surge in retail interest in South Korea and whales positioning cautiously, it remains a divided market on whether the next move is going to bring further corrections or a price resurgence.
The uncertainty of this period has reminded the world that the crypto market is all about dynamic balances of risks and rewards.
