Crypto Analyst Warns of Likely 'Flash Crash,' Sees Buying Opportunity Amid $618M in Liquidations

A prominent crypto analyst has issued a cautionary warning to the market, suggesting a "flash crash" is likely in the near future. The prediction comes after the broader crypto market experienced significant gains in recent weeks, triggering concerns about potential corrections.

Michael van de Poppe, founder of MN Capital and a well-known crypto analyst, highlighted the growing risk of a flash crash following an extended period of market growth. In a post on X (formerly Twitter) on November 3, he emphasized that while a sharp market pullback is imminent, it should be viewed as a buying opportunity.

“Corrections are inevitable, and a flash crash is likely to happen soon, leading to massive liquidations across altcoins,” van de Poppe wrote. “Don’t panic. These events are often a blessing, offering great entry points for long-term investors.”

Liquidity Fears as Market Positions Increase

The warning comes as market positions in crypto assets continue to rise, making the market more vulnerable to sharp price swings. Even a small downturn could trigger large-scale liquidations, amplifying the impact of any price corrections.

In the past 24 hours alone, liquidations in the crypto market totaled around $618.7 million, according to data from CoinGlass. This came after South Korean President Yoon Suk-yeol's unexpected declaration of martial law, which caused market volatility before quickly being reversed.

Among the liquidations, $85.8 million worth of Bitcoin (BTC) positions and $61.5 million in Ether (ETH) positions were wiped out, contributing to the sharp price declines. Bitcoin, Ether, and other major cryptocurrencies experienced significant drops following the emergency declaration but have since partially recovered, with Bitcoin rebounding by 2.4%, Ether by 3.3%, and XRP by 9.2%, according to CoinMarketCap.

Crypto Trading Surge in South Korea

The sudden market dip follows a remarkable surge in retail crypto trading volumes in South Korea. On December 3, 10x Research reported that South Korean retail trading volumes for crypto assets hit $18 billion in just 24 hours, surpassing the country's stock market by 22%. This surge highlights the growing demand for cryptocurrencies in the region, further fueling concerns over market volatility.

Whales on the Sidelines, But Risks Remain

Meanwhile, some of the largest Bitcoin holders—known as "whales"—are currently taking a wait-and-see approach, holding onto their assets as Bitcoin continues to fluctuate near the $100,000 mark. While there is no immediate selling pressure, experts are keeping a close eye on the rising inflow of Bitcoin into exchanges. This could signal a potential risk of future sell-offs, as indicated by CryptoQuant contributor Onat Tütüncüler in a November 2 analyst note.

As the market braces for potential corrections, van de Poppe's advice remains clear: remain calm, use downturns as buying opportunities, and focus on the long-term potential of the crypto market. While the risk of a flash crash remains, many analysts see the current market volatility as a natural part of the crypto landscape, offering opportunities for investors willing to ride out short-term fluctuations.