Bitcoin (BTC) experienced a sudden crash this morning, plummeting over 7% to $66,699 within an hour and a half. However, Daniel Yan, co-founder of Kryptanium Capital, stated that a 5% crash is considered “healthy” during a bull market. The important thing to note is that Bitcoin’s market dominance has also decreased simultaneously, indicating the arrival of altcoin season.
Bitcoin (BTC) plummeted suddenly this morning at 9:45 am, dropping rapidly from around $71,800 to a low of $66,699 within one and a half hours. It experienced a maximum decline of over 7% and was trading at $68,117 at the time of writing.
This led to a synchronized decline in major cryptocurrencies. According to Coinmarketcap data, Ethereum (ETH) briefly fell from $3,900 to a low of $3,623, a 7% drop. At the moment, mainstream coins such as BNB, XRP, ADA, and DOGE have all experienced a 5% to 10% decline.
Coinglass data shows that within the past four hours, the total liquidation amount across the network reached $235 million, with $202 million in long positions and $32.86 million in short positions. The total liquidation amount for Bitcoin alone reached $80.67 million, while for Ethereum, it reached $36.92 million.
However, amidst the market crash, Daniel Yan, co-founder of Kryptanium Capital, tweeted today that a 5% crash is considered healthy during a bull market. He mentioned that what is truly surprising is Bitcoin’s market dominance simultaneously declining for the first time in a long time, indicating the upcoming altcoin season. Currently, Bitcoin’s market dominance has dropped from over 55% a few days ago to 53.27%.
Previously, on the 11th, Daniel Yan tweeted that he believes the altcoin season will come after Bitcoin significantly breaks its new high. In the previous bull market cycle, the logic behind the altcoin season was that Bitcoin’s halving narrative, coupled with institutional capital inflows, drove Bitcoin’s continuous rise before the halving. However, after the halving, traders took profits from the halving trade, leading to more potential gains for altcoins. The current situation is similar, as the current cycle is driven by ETF fund inflows, also fueled by institutional demand. His argument is that the altcoin season should start around mid-April, which is when the Bitcoin halving event occurred.
Daniel Yan stated that for most altcoins, a new high is still far away, which psychologically attracts investors. The new high of Bitcoin confirms that the cryptocurrency market is in a bull market frenzy, and people’s greed will become crazy. However, it is also important to be cautious of short-term bull traps.
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