VanEck Analyst Reveals True Triggers of Bitcoin’s 19% Crash to $60K

Bitcoin’s Sudden Drop Shocks Investors

Bitcoin has seen wild ups and downs, but last week’s hit hard. The top crypto fell 19% to a low of $60,000. Many wondered what caused this sharp decline. A top analyst from VanEck shared clear insights. It’s not one big event. Instead, several forces hit the market at once.

This drop wiped out billions in value. Traders felt the pain as prices tumbled fast. But understanding the reasons can help you see the full picture. Let’s break down what VanEck’s expert said.

Massive Deleveraging Sweeps the Market

One main trigger was deleveraging. This means traders closed high-risk bets. Futures open interest dropped from $61 billion to $49 billion in just one week. That’s over 20% less borrowed money betting on Bitcoin.

This fall matched the price drop. It shows a clean unwind, not panic selling. Leverage got too high, and the market reset itself. High leverage can fuel big gains but also big losses when things turn.

• Open interest: $61B to $49B
• Leverage drop: More than 20%
• Price impact: 19% decline

Pro traders use tools like advanced platforms to watch these shifts. Spotting deleveraging early helps avoid traps.

Bitcoin Miners Forced to Sell Holdings

Bitcoin miners faced tough times too. Many tried to pivot to AI and high-performance computing. They sold hardware dreams to fund new ideas. But AI hype cooled off fast.

Financing dried up as Bitcoin prices fell. Miners had to sell their Bitcoin stacks to pay bills and keep lights on. This added selling pressure on the market.

“As financing conditions tightened alongside Bitcoin weakness, miners faced increased pressure to sell Bitcoin to bolster balance sheets.”

Miners hold a big chunk of Bitcoin. Their sales can shake prices. But this might clear weak hands, setting up stronger miners long-term.

AI Hype Unravels and Hits Miners Hard

The AI boom drew miners in. They saw chance to use their powerful machines for AI tasks. Investors poured money into this shift. But now, doubt grows.

Skepticism around AI investments rose. Funding got scarce. With Bitcoin down, miners can’t rely on mining rewards alone. They sell BTC to survive.

This shows how crypto ties to broader tech trends. When AI excitement fades, it ripples to Bitcoin.

Quantum Computing Fears Add to the Worry

Another factor: quantum computing risks. Talk of quantum computers breaking Bitcoin’s encryption spiked. These machines could crack the code that secures Bitcoin wallets.

Experts say 20% to 50% of Bitcoin coins might be at risk. Investor searches on this topic jumped. Even if the threat is years away, fear sells off now.

Bitcoin developers work on fixes. But headlines fuel short-term panic. It’s a reminder that tech risks never fully go away.

No Single Trigger – A Perfect Storm

Matthew Sigel, head of digital asset research at VanEck, summed it up. “The list reveals a market under siege from multiple directions,” he said.

Collapsing leverage, AI unwind, miner sales, quantum fears – all hit together. This created the . It’s like a storm with many winds.

Sigel’s Bullish View: A Buying Opportunity?

Despite the pain, Sigel stays positive. He calls this a “price washout” that’s attractive for long-term buyers.

“The depth of the drawdown and the degree of leverage reset have made the current price washout increasingly attractive for building positions on a one- to two-year view,” he noted.

Sigel adds to his Bitcoin holdings. He points to the four-year cycle. Bitcoin often rebounds strong after big dips. Psychology of cycles still matters.

Current price sits in mid-$60,000s. Oversold signals flash. For patient investors, this could be a dip to buy.

What This Means for Bitcoin’s Future

The tests the market. But history shows Bitcoin bounces back. Past cycles had worse drops, yet new highs followed.

Watch miners: Strong ones will thrive post-shakeout. Leverage reset clears weak bets. AI and quantum fears may fade as tech advances.

Diversify your portfolio. Don’t put all eggs in Bitcoin. Mix with stable assets to weather storms.

Key Takeaways from the Crash

1. Deleveraging was orderly, not chaotic.
2. Miners selling due to AI pivot fails.
3. Quantum fears are real but not immediate.
4. VanEck sees value now for long-term holds.
5. Four-year cycle still guides the path.

Bitcoin remains the king of crypto. This drop shakes out the weak. Strong hands stay in. What’s your move – hold, buy, or wait?

Stay tuned for more crypto updates. Markets move fast, and insights like these keep you ahead.

Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Did you like the news you just read? Please leave a feedback to help us serve you better

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.