Close Menu
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Market Cap
  • Blockchain
  • Web 3
    • NFT
    • Metaverse
  • Regulation
  • Analysis
  • Learn
  • Blog
  • Contact
    • Tech7685@gmail.com
What's Hot

Moroccan researchers tap blockchain for diploma fraud prevention

2025-06-06

Dassault Systèmes: Doubling EPS against 2029, 3D UNIV+RSEs create new growth opportunities

2025-06-06

BNB – Signs of accumulation, but should traders wait for a dip instead?

2025-06-06
Facebook X (Twitter) Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • Free.cc (Free Crypto)
Facebook X (Twitter) Instagram
Bitcoin Platform – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
  • News
    • Bitcoin
    • Altcoins
    • DeFi
    • Market Cap
  • Blockchain

    Moroccan researchers tap blockchain for diploma fraud prevention

    2025-06-06

    Kommunitas and Nativ Forge Alliance to transform Real-World digital economies

    2025-06-06

    Shards Protocol lands $ 2 million from Animoca, YGG to grow web3 Identity Layer

    2025-06-05

    Soonchain Fores Partnership with Rei Network to define web3 gaming

    2025-06-05

    Maskdao acquires Orb.Club, which unlocks virality in the chain to stimulate the creator economy

    2025-06-05
  • Web 3
    • NFT
    • Metaverse
  • Regulation

    Anthropic CEO calls for AI transparency, argues against Trump Bill’s decade-long state-controlling freezing

    2025-06-05

    Former Doge -Head Elon Musk tells Wetgevers to kill Trump’s ‘big, beautiful’ account

    2025-06-05

    Hong Kong Reading to legalize Bitcoin and Crypto derivatives in PURT to Web3 leadership

    2025-06-05

    US-based ETFs that set for growth, despite some regulatory, macro-tailwinds

    2025-06-04

    NYSE ARCA submits to mention Truth Social’s Spot Bitcoin ETF

    2025-06-03
  • Analysis

    Circle makes Wall Street debut as the first major stablecoin -mittent on NYSE

    2025-06-06

    ZK-proof Blockchain Altcoin Lagrange (LA) is getting away after the announcement of new Coinbase support

    2025-06-05

    Successful retest of Breakout zone sets phase for the next leg higher

    2025-06-05

    Circle stock price Skyrockets 234% in less than 30 minutes, causing multiple commercial levels

    2025-06-05

    Here are the two most important graphs in the entire macro, according to the former Goldman Sachs director Raoul Pal

    2025-06-05
  • Learn

    What Is Crypto Staking? A Beginner-Friendly Guide

    2025-06-05

    What Are Liquidity Pools? A Beginner’s Guide

    2025-06-05

    What Is Yield Farming and How Does It Work?

    2025-06-02

    What Is Asset Tokenization? How It Works and Why It’s Important

    2025-05-30

    What Is DeFi 2.0 and Why It Matters

    2025-05-27
  • Blog
  • Contact
    • Tech7685@gmail.com
Bitcoin Platform – Bitcoin | Altcoins | Blockchain | News Stories Updated Daily
Home»Bitcoin»Bitcoin price could crash like it did in May 2021, fund manager warns
Bitcoin

Bitcoin price could crash like it did in May 2021, fund manager warns

2024-07-04No Comments4 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

Bitcoin price has fallen below the critical support level of $60,000 and has touched a low of $57,914. Since Tuesday, Bitcoin has experienced a further decline of 7%, reinforcing the ongoing downtrend. Currently, market sentiment is clearly shifting to the bearish side.

Is a Bitcoin Crash Coming in May 2021?

Andrew Kang, co-founder of Mechanism Capital, has done just that increased There are major concerns about the pattern emerging in the Bitcoin market, which is reminiscent of the conditions that led to the dramatic crash of May 2021. In a detailed analysis shared via X (formerly Twitter), Kang highlighted the over overlooked criticality of current market dynamics.

Kang stated: “Most market participants do not realize the significance of a potential loss of a four-month range on Bitcoin. The closest parallel we can draw is to May 2021, where we also came out of a parabolic rally in BTC and alts.”

Related reading

He noted the similarities in market conditions, especially in terms of leverage positions, which currently exceed $50 billion. “This figure does not include the Chicago Mercantile Exchange (CME), which is higher, but is compounded by the fact that we have been in this scenario for even longer (18 weeks versus 13), and we have not yet had any extreme excesses while we were there, a few were in the middle of the 2020-2021 bull market,” Kang explains.

Kang also adjusted his projections for Bitcoin’s bottom, suggesting a steeper decline than previously expected: “It’s likely my initial estimates of a low $50k were too conservative and we see a more extreme reset to $40k.” He warned that such a pullback could significantly harm the market, requiring a few months of consolidation and a downtrend before a reversal to an uptrend would be conceivable.

See also  Will Bitcoin Hit a New All-Time High? Crypto Analyst Reveals Why $90,000 Is Possible

In a dialogue with Alex Krüger, a renowned macro and crypto analyst, the discussion explored the intricacies of open interest (OI) in the derivatives market, a crucial aspect of understanding market sentiment and directional biases. Krüger noted: “A large part of that OI, however, is not directional,” indicating more complex market behavior than simple long and short positions.

Related reading

In response, Kang clarified the composition of OI, saying: “Each unit of OI is one long + one short. Even if there are basic trading shorts on the short side, there is a directional long on the other side. So yeah… less directional shorts.” The conversation further discussed whether derivatives traders are delta neutral, which affects market stability.

Krüger asked about market maker positions, and Kang replied: “I can assure you that there are not many market makers in the OI who have delta neutral long perps and short spot paying funding/loans on both sides for a negative carry trade .”

What happened in May 2021?

This ongoing discussion among experts reflects a growing concern over the possibility of a repeat of the May 2021 crash. During that period, Bitcoin’s price plummeted dramatically, after peaking at around $64,000 in mid-April 2021. At the end of June, Bitcoin had fallen around 56% lost its value. This crash was caused by a combination of factors, including the crackdown by regulators in China, environmental concerns raised by influential figures such as Tesla CEO Elon Musk, and a resulting cascade of panic selling among both retail and institutional investors.

Looking back, the May 2021 downturn was marked by a rapid shift in investor sentiment, driven by external shocks and exacerbated by high levels of debt in the market. Today, according to Kang, similar conditions could arise, with high levels of debt and longer periods without significant price corrections, indicating that the market may be on the verge of another serious downturn.

See also  El Salvador's Bitcoin Profits Surge 40%, But Bukele Says 'We Won't Sell'

At the time of writing, BTC was trading at $58,736.

Bitcoin price
BTC falls below $59,000, 1-day chart | Source: BTCUSD on TradingView.com

Featured image created with DALL·E, chart from TradingView.com

Source link

Bitcoin Crash Fund Manager Price warns
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Bitcoin network activity is booming despite a quiet market – data

2025-06-06

The HODL level of Bitcoin reaches 2 years high: are LTHS the key to the next wave of BTC?

2025-06-06

Moscow Exchange gives a list of BlackRock Bitcoin Futures

2025-06-05

Bitcoin Treasury debts concerning concern are exaggerated, “Exec claims

2025-06-05
Add A Comment

Comments are closed.

Top Posts

Join us and embrace the future: go for .boomer!

2024-12-05

ETF dream fades, price plummets below $42,000

2024-01-13

Vice President Kamala Harris Contacts Coinbase and Others to Develop Close Ties with Crypto: Report

2024-07-29
Editors Picks

XRP Bulls shake off the crash, point this great resistance on the road to $ 3.85

2025-01-28

Animoca Brands Japan facilitates the expansion of overseas Web3 projects to Japan

2024-04-03

Dogecoin: Is DOGE ready to escape this compact range?

2023-07-13

XRP broke barriers like Bullish Surge focuses on $ 2.25 and beyond

2025-03-01

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, Defi, NFT, Metaverse and more.

We're social. Connect with us:

Facebook X (Twitter) Instagram Pinterest YouTube
Top Insights

Moroccan researchers tap blockchain for diploma fraud prevention

Dassault Systèmes: Doubling EPS against 2029, 3D UNIV+RSEs create new growth opportunities

BNB – Signs of accumulation, but should traders wait for a dip instead?

Get Informed

Subscribe to Updates

Get the latest news and Update from Bitcoin Platform about Crypto, Metaverse, NFT and more.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
  • Advertise
  • Free.cc (Free Crypto)
© 2025 Bitcoinplatform.com - All rights reserved.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$102,600.77-2.46%
  • ethereumEthereum(ETH)$2,450.85-6.78%
  • tetherTether USDt(USDT)$1.000.01%
  • rippleXRP(XRP)$2.13-3.64%
  • binancecoinBNB(BNB)$640.20-4.08%
  • solanaSolana(SOL)$147.02-4.40%
  • usd-coinUSDC(USDC)$1.000.02%
  • tronTRON(TRX)$0.2768371.19%
  • dogecoinDogecoin(DOGE)$0.174821-8.12%
  • cardanoCardano(ADA)$0.64-5.98%
  • hyperliquidHyperliquid(HYPE)$34.52-2.72%
  • suiSui(SUI)$2.98-6.63%
  • chainlinkChainlink(LINK)$13.16-5.42%
  • stellarStellar(XLM)$0.260170-2.80%
  • avalanche-2Avalanche(AVAX)$19.21-5.22%
  • unus-sed-leoUNUS SED LEO(LEO)$8.77-1.93%
  • bitcoin-cashBitcoin Cash(BCH)$384.20-4.90%
  • the-open-networkToncoin(TON)$3.08-3.70%
  • shiba-inuShiba Inu(SHIB)$0.000012-5.67%
  • hedera-hashgraphHedera(HBAR)$0.164087-2.72%
  • litecoinLitecoin(LTC)$84.14-4.85%
  • polkadotPolkadot(DOT)$3.90-3.64%
  • moneroMonero(XMR)$319.420.50%
  • ethena-usdeEthena USDe(USDE)$1.00-0.02%
  • daiDai(DAI)$1.000.01%
  • bitget-tokenBitget Token(BGB)$4.58-3.39%
  • piPi(PI)$0.62-4.52%
  • pepePepe(PEPE)$0.000011-9.96%
  • uniswapUniswap(UNI)$6.02-5.29%
  • aaveAave(AAVE)$246.31-7.13%
  • bittensorBittensor(TAO)$361.26-5.27%
  • okbOKB(OKB)$49.93-0.30%
  • crypto-com-chainCronos(CRO)$0.098118-2.32%
  • aptosAptos(APT)$4.58-5.01%
  • nearNEAR Protocol(NEAR)$2.30-6.39%
  • internet-computerInternet Computer(ICP)$4.94-6.82%
  • ethereum-classicEthereum Classic(ETC)$16.51-4.82%
  • ondo-financeOndo(ONDO)$0.79-4.72%
  • gatechain-tokenGateToken(GT)$18.64-2.75%
  • usd1World Liberty Financial USD(USD1)$1.000.04%
  • kaspaKaspa(KAS)$0.082195-1.97%
  • mantleMantle(MNT)$0.64-4.49%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.203229-5.98%
  • vechainVeChain(VET)$0.022906-3.98%
  • official-trumpOFFICIAL TRUMP(TRUMP)$9.76-10.93%
  • render-tokenRender(RENDER)$3.64-4.16%
  • ethenaEthena(ENA)$0.291641-7.88%
  • artificial-superintelligence-allianceArtificial Superintelligence Alliance(FET)$0.72-9.79%
  • worldcoin-wldWorldcoin(WLD)$1.05-7.39%
  • filecoinFilecoin(FIL)$2.41-6.84%
  • bitcoinBitcoin(BTC)$102,600.77-2.46%
  • ethereumEthereum(ETH)$2,450.85-6.78%
  • tetherTether USDt(USDT)$1.000.01%
  • rippleXRP(XRP)$2.13-3.64%
  • binancecoinBNB(BNB)$640.20-4.08%
  • solanaSolana(SOL)$147.02-4.40%
  • usd-coinUSDC(USDC)$1.000.02%
  • tronTRON(TRX)$0.2768371.19%
  • dogecoinDogecoin(DOGE)$0.174821-8.12%
  • cardanoCardano(ADA)$0.64-5.98%
  • hyperliquidHyperliquid(HYPE)$34.52-2.72%
  • suiSui(SUI)$2.98-6.63%
  • chainlinkChainlink(LINK)$13.16-5.42%
  • stellarStellar(XLM)$0.260170-2.80%
  • avalanche-2Avalanche(AVAX)$19.21-5.22%
  • unus-sed-leoUNUS SED LEO(LEO)$8.77-1.93%
  • bitcoin-cashBitcoin Cash(BCH)$384.20-4.90%
  • the-open-networkToncoin(TON)$3.08-3.70%
  • shiba-inuShiba Inu(SHIB)$0.000012-5.67%
  • hedera-hashgraphHedera(HBAR)$0.164087-2.72%
  • litecoinLitecoin(LTC)$84.14-4.85%
  • polkadotPolkadot(DOT)$3.90-3.64%
  • moneroMonero(XMR)$319.420.50%
  • ethena-usdeEthena USDe(USDE)$1.00-0.02%
  • daiDai(DAI)$1.000.01%
  • bitget-tokenBitget Token(BGB)$4.58-3.39%
  • piPi(PI)$0.62-4.52%
  • pepePepe(PEPE)$0.000011-9.96%
  • uniswapUniswap(UNI)$6.02-5.29%
  • aaveAave(AAVE)$246.31-7.13%
  • bittensorBittensor(TAO)$361.26-5.27%
  • okbOKB(OKB)$49.93-0.30%
  • crypto-com-chainCronos(CRO)$0.098118-2.32%
  • aptosAptos(APT)$4.58-5.01%
  • nearNEAR Protocol(NEAR)$2.30-6.39%
  • internet-computerInternet Computer(ICP)$4.94-6.82%
  • ethereum-classicEthereum Classic(ETC)$16.51-4.82%
  • ondo-financeOndo(ONDO)$0.79-4.72%
  • gatechain-tokenGateToken(GT)$18.64-2.75%
  • usd1World Liberty Financial USD(USD1)$1.000.04%
  • kaspaKaspa(KAS)$0.082195-1.97%
  • mantleMantle(MNT)$0.64-4.49%
  • polygon-ecosystem-tokenPOL (prev. MATIC)(POL)$0.203229-5.98%
  • vechainVeChain(VET)$0.022906-3.98%
  • official-trumpOFFICIAL TRUMP(TRUMP)$9.76-10.93%
  • render-tokenRender(RENDER)$3.64-4.16%
  • ethenaEthena(ENA)$0.291641-7.88%
  • artificial-superintelligence-allianceArtificial Superintelligence Alliance(FET)$0.72-9.79%
  • worldcoin-wldWorldcoin(WLD)$1.05-7.39%
  • filecoinFilecoin(FIL)$2.41-6.84%