Bitcoin Expert Shares 75% Loss: ‘Crypto Is Getting Absolutely Destroyed’ #
“This is the toughest period since 2018” and we are seeing “total capitulation.” With these stark conclusions, well-known Dutch crypto analyst Michaël van de Poppe opens his latest video. According to him, the market is currently being “completely destroyed.”
Worst Period for Bitcoin in Years #
Van de Poppe paints a bleak picture of the current situation. In just one month, Bitcoin has fallen by 25%, a correction we haven’t seen since 2021.
He specifically points to technical indicators like the RSI, which measures whether a coin is oversold. It is now at its lowest point since the COVID crash in 2020.
Even more striking is the Fear & Greed Index, the barometer for market sentiment. It is currently at 6, the lowest level ever recorded. This indicates extreme fear among investors. According to Van de Poppe’s data, a staggering 99% of short-term investors are currently at a loss.
Cause in Japan? #
Where is this sudden selling pressure coming from? According to the analyst, the cause lies outside the crypto market, namely in Japan. For years, large investors there could borrow money almost for free to invest in risky markets, a strategy known as the ‘carry trade’. Because interest rates in Japan are now rising, this money tap is being turned off.
This forces large parties to immediately sell their positions in Bitcoin and technology stocks to repay their loans. This creates a domino effect where liquidity (available money) is rapidly pulled out of the market.
A Painful Reckoning #
Van de Poppe is transparent about the consequences for his own ‘altcoin portfolio’. The numbers are painful: from the initial investment of $110,000, only about $28,000 remains. This means a loss of approximately 75%. Coins like Optimism and Tao have taken heavy hits. “I was wrong with my expectation,” the analyst admits.
Yet, he refuses to sell at what he sees as a potential bottom. He notes that, percentage-wise, altcoins are not currently falling much harder than Bitcoin itself, which is unusual in a downward market.
He sees this as a sign that the market is extremely undervalued. His plan is not to capitulate, but to adjust his strategy. He will start managing the portfolio more actively in the coming period to recoup the losses faster, rather than waiting passively.