The digital asset market recorded a historic liquidation of over $30 billion and affected 1.7 million traders in less than 24 hours with last Friday’s crash.
This shock coincides with US President Donald Trump’s tariff threats to China, sparking comments in the community about suspicions of insider trading and a massive flow of capital into bitcoin (BTC).
The crash dashed the hopes of many investors. The evaporated capital exceeded the capitalization of any altcoin beyond seventh place. Juan Rodríguez, Colombian analyst and presenter of the YouTube channel “Bitcoin y cryptos”, pointed out the magnitude of the losses by observing that The phenomenon mainly impacts those immersed in altcoins and memecoins.
For his part, the trader Juan Martín Collavini express his desolation after losing “years and years” of investment, revealing that he made an unfortunate switch from Argentine to Brazilian stocks that resulted in even greater losses. “This job is not for me…” he lamented, announcing a temporary retirement from the networks.
Regarding this, cryptographer Nick Szabo, known for his closeness with Satoshi Nakamoto, shared a sharp warning. In response to a user frustrated by losses on Solana meme coins, Szabo exposed the vicious cycle of exaggerated optimism.
“The hypesters (euphoria promoters) bought, then they spread memes, then you bought, then they sold. Guess who took the profits, you or the hypesters“said Szabo. His message resonates as a stark reminder that in the speculative frenzy, The real winners are usually those who orchestrate the euphorianot those who fall into it. With this, the precursor of bitcoin invites everyone to pause before joining the herd.
For his part, Samson Mow, CEO of Jan3, stated that many altcoins and memecoins had “ridiculous valuations”, revealing the lack of liquidity and buyers. Mow predicted a “massive flow of capital back into bitcoin,” proclaiming the “birth of a new generation of maximalist bitcoiners.” Consider this purge the catalyst for the pioneering digital currency’s true bull market.
Suspicions of insider information
The market crash occurred precisely one minute after Trump announced tariffs on China. For this reason, the Colombian bitcoiner known on social networks as “BTCAndres” exposed a possible insider trade, highlighting a whale that opened short positions just before Trump’s announcement, making more than $190 million in profits.
Nayib Bukele’s advisor on bitcoin issues, Max Keizer, suggested agree with that idea by pointing out that “Wall Street is stealing bitcoin from newbies”, expressing serious doubts about the transparency of the market.
However, it’s not all negative because despite the massive losses, some see a buying opportunity. Tomás Field, public relations manager of the Lemon exchange, revealed a behavior of “strong buy” by usersespecially using Argentine pesos for digital assets such as bitcoin and ether (ETH). «We had 1.5 crypto purchases per second at the time of the drop. It was really crazy yesterday. “The dip was taken advantage of,” said Field in communication with CriptoNoticias.
“It is the history of finance and markets, going back 400 years,” warned Maslatón, criticizing the lack of study on the negative effects of financial leverage.
The current situation underscores the need for caution and a well-informed investment strategy. However, it is worth asking whether the fall of bitcoin is a catastrophe or a historic opportunity?, as reported by CriptoNoticias.