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The Crypto Market has seen an unprecedented increase in fluctuation, with metal currencies like Bitcoin and Ethereum facing extremist fluctuations. Since January, and The frequency of flash accidents increased sharplyEliminating billions of market. The encryption analyst suggested that these flash accidents were driven by several factors, providing a detailed view of what is already going on in the market.
Why flash accidents occur in the encryption market
The encryption analyst known as his “Kobe Cubesi” I watered light In the collapse of the last market and why the major currencies decrease significantly. The analyst revealed that the increasing number of flash accidents has removed more than $ 300 billion from the market within only 24 hours.
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He revealed that the previous day, the market started to sell, Bitcoin drop to less than 95,000 dollars. Between 1:45 am Eastern time and 2:15 am Each time, the cryptocurrency had one of the most shock accidents, as it decreased by $ 5,000 in just minutes.
Ethereum, the second largest encrypted currency after Bitcoin, was worse. Altcoin has witnessed huge qualifiers in 37 % Price collapse On February 2, it is fueled by the addresses of the trade war.
Kobeissi's message revealed that the main factor behind these dramatic flash accidents is the increasing gap between institutionalism and Retail investors. Wall Street Hedge boxes Their short positions on ETHEREUM have increased by 500 % since November 2024, which represents a historical level of institutional landing towards ETHEREUM. It also increased locations in Ethereum as well More than 40 % in just one week. Moreover, the ETHEREUM price has decreased by almost 40 % since December 2024, while Bitcoin decreased by 15 %.
On the other side, Institutions continued to collect bitcoinWhile retail investors have poured capital to a smaller Altcoins like Solana, Creating severe fluctuations in these assets. This “polarization”, as the analyst calls it, led to the formation of “air pockets” in liquidity. As a result, when the sale begins, it leads to successive liquidation, and amplification Market instability and price accident.
The analyst has also determined that this polarization phenomenon works in the opposite direction, where the market can experience rapid recovery, which leads to billions that have been added to the maximum market within hours.
Transformations in feelings and political influence contribute to the failure of the market
Kobeissi's message revealed that the fear and greed index has decreased from a bullish position just weeks ago to 29 % Extreme fearWhich confirms the speed with which the market's feeling changes to negativity. The analyst suggests that severe sites in the encryption market increases the number of these flash accidents, which makes the encryption significantly unexpected.
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In addition to the turmoil, the analyst revealed that political effects and companies dictate the encryption market. He emphasized that Eric Trump was Public support to buy bitcoin and ethereum During the declines, they are in line with events such as Ethereum's Recovery 3 February and Bitcoin on February 25.
while Market experiments break the flash And instability, Microstrategy continues the accumulation of bitcoin. The analyst revealed that the company also contributed to attracting bitcoin due to The uninteresting accumulation direction. While the company buys more Bitcoin, the MSTR shares continue to decline, which represents a 45 % decrease from the highest level on November 20.
Distinctive image from Unsplash, Chart from TradingView.com
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