The crypto market is becoming increasingly volatile. Despite a slight recovery, a source of confidence among investors, a shadow once again hangs over the future of digital assets. Indeed, Alan SANTANA, one of the most renowned analysts in the crypto field, predicts a spectacular collapse of $1,000 billion in market capitalization. So what are the factors likely to cause 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 verge of a drastic decline. According to SANTANA, Bitcoin, which represents a significant portion of the total market capitalization, is about to enter a “capitulation” phase. He dubs this event the “Bitcoin Capitulation 2024.” A lot of money will be withdrawn from the market. This massive withdrawal trend, according to him, is a precursor to a general decline in prices. Bitcoin and altcoins, which have shown relative resilience even when Bitcoin fluctuates, are now starting to show signs of weakness.
The reasons for this pessimistic forecast are multiple. On the one hand, SANTANA points to slowing altcoin price gains as key indicator. This change in dynamics could herald a major correction. The market could see its capitalization fall by half, from $2.2 trillion to around $1.26 trillion, a level not seen since 2022.
The impact of a possible 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 lead to a massive liquidation of positions by many traders, with losses that could extend to billions of dollars in a matter of moments. This rapid liquidation could wipe out positions and drive many investors out of the market, further exacerbating the price decline.
However, SANTANA is not completely pessimistic. In a post-crash scenario, he sees a possible long-term recovery, especially for Bitcoin. He points out that this crash and recovery cycle could take place in the space of 1 to 3 weeks. This potential rebound would offer opportunities for those willing to weather the storm and invest for the long term.
The upcoming situation may not be just a temporary correction, but rather the prelude to a prolonged period of volatility. The massive withdrawals of funds, both from Bitcoin and altcoins, indicate a loss of confidence that would worsen if the crash predictions come true. At the same time, institutional investors and whales would also adopt a rapid liquidation approach to protect their gains, which would only amplify the fall.
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