Crypto Market Meltdown: $20 Billion Liquidation Event Exposed by Bitwise Portfolio Manager's Shocking Analysis

Crypto Market Meltdown: A Bitwise Portfolio Manager's Postmortem Analysis A record-breaking $20 billion liquidation event shook the cryptocurrency market on Friday, leaving investors reeling and analysts scrambling to make sense of the chaos. According to Jonathan Man, a portfolio manager at Bitwise Asset Management, the day's extreme volatility was unprecedented. "The worst liquidation event in crypto history," Man described the situation, citing a one-hour drop of 13% in Bitcoin (BTC) prices, followed by sharp rebounds from extreme lows. "It was like nothing we've ever seen before." The market meltdown began around 2:00 p.m. ET on Friday, with BTC plummeting to $111,950.34, down from its previous high of $114,000. The sudden drop triggered a wave of liquidations across the board, with Ethereum (ETH) and other major cryptocurrencies experiencing significant losses. "We saw a perfect storm of factors come together," Man explained in an interview. "A combination of technical analysis, market sentiment, and external influences created a perfect recipe for disaster." The extreme volatility was not limited to Bitcoin alone. Other major cryptos like Ethereum, Binance Coin (BNB), and XRP also experienced significant price swings, with some assets dropping by as much as 20% in a matter of hours. The liquidation event has left many investors wondering what caused the sudden market downturn. Man attributed it to a combination of factors, including over-leveraging, market sentiment, and external influences like regulatory uncertainty. "The crypto market is known for its volatility, but this was something different," he said. "We're seeing a positioning reset that's leaving markets on different footing by Saturday." The implications of the liquidation event are far-reaching, with many analysts warning of potential long-term consequences for the cryptocurrency market. "This event highlights the need for greater regulatory oversight and more robust risk management practices in the crypto space," said Siamak Masnavi, a blockchain expert at AI Boost. "Investors need to be aware of the risks involved and take steps to mitigate them." As the market continues to recover from the shock, investors are left wondering what's next for the cryptocurrency market. "The crypto market is known for its resilience, but this event has left many questions unanswered," Man said. "We'll have to wait and see how markets react in the coming days and weeks." Current Status: The cryptocurrency market continues to recover from Friday's liquidation event. Prices are still volatile, with some assets experiencing significant price swings. Analysts warn of potential long-term consequences for the crypto market. Next Developments: Regulatory bodies are expected to take a closer look at the crypto market in light of the recent events. Investors are advised to exercise caution and consider risk management strategies. The cryptocurrency market is likely to remain volatile in the coming days and weeks. *Reporting by Coindesk.*