‘Real Decline’ Could Begin During US Market Hours (CryptoQuant)

While BTC and most altcoins have posted double-digit losses over the past 24 hours, CryptoQuant analysts warn that there could be even more volatility in the hours ahead as the US stock market is in point of opening to negotiation.

They argued that the Coinbase Premium Gap (CPG) will be the metric to watch in the next 24 hours or so.

The crypto market has already bled heavily since Friday, losing more than $500 billion in that time frame. The price of Bitcoin fell from $66,000 at the time to just under $50,000 earlier today, with warnings of a possible drop to $40,000.

Altcoins have taken an even worse hit, with ETH falling more than $3,000 to $2,200, while many others, such as SOL and DOGE, have seen declines of 30-40%.

Most experts attribute the current decline to macroeconomic factors, mostly related to the US. After all, it all started after Friday’s US jobs report showed a weak economy and record unemployment rates.

Wall Street poured in on Friday, and pre-market activity has also been pretty painful. Accordingly, CryptoQuant analyst (Mignolet) warned that there will be even more volatility once Wall Street opens.

They pointed to the Coinbase Premium Gap (the difference between the price of BTC on Coinbase and Binance), which could be the metric that shows whether US-based investors have sold their holdings. If that is the case, Mignolet laid out two possible scenarios, both of which sound quite pessimistic.

“1. Significant price volatility is likely to occur during US market hours.

2. If US whales want the current price drop, the real drop has not yet begun. If not, there is the possibility of a quick rebound.”

Anyway, total liquidations in the last day have exceeded $1 billion, with over 300,000 traders wiped out. Investors should be cautious during these times of improved volatility and refrain from opening over-leveraged positions.

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