A widely followed crypto analyst is diving into Bitcoin’s (BTC) latest crash which has brought the rest of the digital assets market down with it.
Crypto trader Michaël van de Poppe tells his 663,300 X followers that the markets are currently undergoing the most massive liquidation event of the year.
“The biggest liquidation event in 2023.
Two scenarios:
– The market is truly broken and we continue to grind downwards. Signs: Evergrande going bankrupt & Treasury bonds crashing.
– We’ve got a V-Shape coming up, just like March and June with news coming up. Grayscale?”
Van de Poppe then looks at the open interest on BTC, a tool that tracks the number of open positions on a particular contract. According to the analyst, the open interest charts haven’t looked this way since November 2022 and March 2023.
“Yup, reset of Open Interest on Bitcoin and we’re into areas where we’ve not seen the 4H RSI (4-hour relative strength index) in.
– November ’22.
– March ’23.”
The analyst then dives into one possible reason for BTC’s sharp decline in such a short time, down 7.8% in the last 24 hours alone.
“The markets are crashing because people assume that SpaceX sold their Bitcoin?
Of course they devalue their Bitcoin value when the markets crash 80% in a year.”
According to a Wall Street Journal report on Thursday, SpaceX sold its Bitcoin after reducing its value by $373 million in 2022 and 2021.
BTC is worth $26,157 at time of writing, down 11% in the last seven days.
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