The recent sharp decline in the cryptocurrency market has wiped out billions of dollars and driven tens of thousands of investors away, heightening anxiety. Rapid price drops in major cryptocurrencies like Bitcoin and Ethereum have contributed to increasing pessimism across the industry. Experts suggest that the crash might be the start of a structural reorganization rather than just a temporary correction.
QwQiao Urges for Weak Investors to Exit
QwQiao, co-founder of Alliance DAO, believes the current market upheaval may evolve into a far more painful phase. He notes that inexperienced investors, heavily investing in cryptocurrencies and ETFs, create a fragile market structure. According to him, this group tends to engage in collective selling during moments of panic, exacerbating declines.
QwQiao suggests that for the market to establish a strong foundation, prices might need to fall an additional 50% from current levels. This process, he argues, will prepare the ground for the next “super cycle” by purging the market of excessive leverage and emotional investors.
Reflecting on similar sharp corrections in past cycles, QwQiao emphasizes the need to restore structural integrity in the market. He maintains that short-term pain is a prerequisite for long-term stability.
Burniske Warns on Potential New Wave of Risks
Chris Burniske, a partner at Placeholder, warned via his social media account that the market has entered a new phase of selling. Burniske highlighted that crypto asset treasuries (DAT) might see sharp reversals following swift price increases. A participant in the discussion pointed out that BlackRock’s IBIT ETF investors have an average cost of around $80,500, implying many are currently at a loss.
The current situation may lead to increased price pressure due to forced sales stemming from bankruptcy-prone funds and zombie companies. Burniske’s statement, “I have been expecting this for a while,” suggests his continued belief in a sell-heavy market phase.
Blockchain analyst Ali Martinez noted that Bitcoin’s weekly chart shows the SuperTrend indicator signaling a downtrend again, cautioning investors. He recalled that this indicator heralded significant corrections each time it activated in the past, indicating that technical signals also support the structural decline scenario.
According to data, Bitcoin is trading at $82,389, a 9.97% drop in the last 24 hours, while Ethereum has fallen by 10.15% to $2,700 during the same period. Leading altcoins such as XRP, Dogecoin, Solana, and BNB also experienced declines of over 10%.