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Experts Urge Investors To Buy The Dip After Steep Liquidations
According to CoinMarketCap data, the global cryptocurrency market capitalization stands at $3.95 trillion, having shed a significant portion of its value in a flash crash. Leading cryptocurrencies, such as Bitcoin and Ethereum, have lost double-digit percentages, with Bitcoin trading at $115,770 and Ethereum at $4,262, respectively.
The crash triggered nearly $20 billion in liquidations in a single day, with leveraged long traders being the most brutal hit. Compared to other black swan events, on-chain data revealed that the latest crash has triggered the largest liquidation in the history of cryptocurrencies.
For comparison, the pandemic crash led to only $1.2 billion in liquidations, while the FTX crash triggered $1.6 billion in liquidations. Crypto expert Quinten Francois disclosed that the recent crash provides a chance for investors to buy at the bottom, just as previous crashes have served as the foundation for meteoric rallies.
His comments received acknowledgment from Binance founder Changpeng Zhao, with Quinten adding that “winners of tomorrow are made on days like this.”
 
Anthony Pompliano noted that despite the scale of the liquidations, the Bitcoin price remains firmly within six digits. Pompliano revealed in an X post that by absorbing the initial shock of the liquidations, Bitcoin is poised for a significant rally in the near future.
“We dreamed for days like this,” remarked Pompliano. “We are going so much higher over time.”
Despite the optimism from a cross-section of analysts, several industry participants are interpreting the crash and subsequent liquidations as signs of a bear market. Fence-sitter say the move downward is either a shakeout or the start of a crypto winter with no inbetweens, while others are pointing to Donald Trump’s negotiations with China as a key factor in determining short-term price direction.
“I don’t think this is a shakeout or the start of a bear market. I do think it is dependent on if Trump and Xi meet and the outcome,” said cryptocurrency trader Jordan Lindsey on X. “Likely a correction is underway before we muddle along again until we re-accelerate.”