According to analytics firm 10x Research, the historic $380 billion market crash could end up being “the cleanest setup” for the next market rally.
Roughly $19 billion worth of crypto recently got liquidated, which is by far the most violent crash of all time.
Biggest crypto market wipeout ever
As reported by U.Today, crypto prices started dropping sharply lower after the U.S. threatened to impose more tariffs on China, accusing the latter of holding the world “captive” with its rare earth export curbs.
The White House then followed up on its threat, announcing 100% tariffs on Chinese goods, dramatically escalating the trade tensions between the world’s two biggest economies.
The prices of virtually all major altcoins collapsed following the announcement, with major tokens losing more than half of their value in virtually no time.
For instance, the price of the Ripple-linked XRP token careened by a whopping 55% to the lowest level since November before recovering.
Bitcoin’s market dominance briefly surged to 63.48% amid the humongous altcoin crash, but it has since declined to its current level of 60.28%.
More opportunities
According to 10x Research, the crash presents market participants with opportunities following a huge string of forced liquidations.
Now that funding rates have turned deeply negative, excessive leverage has been flushed out, and this could be the springboard for the next rally.
More selling pressure?
Meanwhile, Bitcoin is currently struggling to recover, currently trading below $112,000.
According to Lookonchain, a sleeping Bitcoin OG just woke up and deposited a total of $33.5 million to the Binance exchange.