Amid the turmoil in the digital currency market, the news that Bitcoin fell below $67,000 was like a bombshell, causing huge shock among investors. Kryptanium Capital’s statement added fuel to the fire, saying that this flash crash is just part of normal market fluctuations and that the altcoin season is coming. As market changes continue to emerge, investors are faced with an important decision: to hold on or to flee? This article will analyze this incident in depth and explain the ups and downs of the digital currency market for you.

Coin Circle (120BTc.COM) News: Bitcoin (BTC) suddenly fell sharply at 9:45 this morning, from around US$71,800, to a low of US$66,699 within an hour and a half, the largest drop. More than 7%, and as of the deadline, it was quoted at US$68,117.

This caused all major currencies to fall at the same time. Coinmarketcap data shows that Ethereum (ETH) once plummeted from US$3,900 to a low of US$3,623, a drop of 7%. Currently, mainstream currencies such as BNB, XRP, ADA, and DOGE all have 5% to 10% decline.

Coinglass data shows that in the past 4 hours, the liquidation volume of the entire network reached 235 million US dollars, with long positions liquidation of 202 million US dollars, short positions liquidation of 32.86 million US dollars, of which the total liquidation volume of Bitcoin reached 80.67 million US dollars, and the liquidation volume of Ethereum was US$80.67 million. The position amounted to US$36.92 million.

Kryptanium Capital says flash crash is normal

However, during the currency market crash, Kryptanium Capital co-founder Daniel
Yan tweeted today that in a bull market, a 5% flash crash is quite healthy. This is not surprising. What is really surprising is that Bitcoin’s market share fell at the same time as Bitcoin for the first time in a long time. Altcoins The season is really coming, and the current Bitcoin market share has dropped to 53.27% from more than 55% a few days ago.

Bitcoin market share changes

Previously, Daniel
Yan tweeted on the 11th that he believes that the altcoin season will arrive after Bitcoin clearly breaks through new highs. The logic of the last bull market altcoin season is that the Bitcoin halving narrative, coupled with the inflow of institutional funds, promoted the decline. Bitcoin continued to rise before the halving, but after the halving, traders took profits on the halving trade, and funds flowed into altcoins with more potential gains.

And this is similar to the current situation, which is driven by ETF inflows and the same bull market driven by institutional demand. His thesis is that the altcoin season should start around mid-April, which is when the Bitcoin halving event occurs. when.

Daniel
Yan said that for most altcoins, new highs are still far away, which will psychologically appeal to investors, while Bitcoin’s new highs confirm that the currency market is in a bull market and people’s greed will become crazy. , but we also need to pay attention to short-term bull traps.