Crypto Market Set For ‘Cleansing’ Before 2024 Bullrun: Expert

Oliver L. Velez, an experienced digital assets trader, has advised crypto investors to get their bitcoins off crypto exchanges and prepare to buy the dip. Velez said this in a recent post on X (formerly Twitter) where he identified a crucial reason why the crypto market might experience another significant crash.

Velez claimed that at its current price, BNB is near Binance’s last leveraged liquidation price. He believes that a BNB collapse would impact the entire crypto market in a significant way. According to Velez, a BNB crash will send the crypto market tumbling by more than ten times the magnitude of the crash experienced during the FTX collapse of last November.

The highly experienced trader recalled an event that preceded the FTX collapse, when Carolin Ellis, CEO of Alameda Research, posted that Alameda would buy Changpeng Zhao’s FTT tokens for $22 each. Of course, that did not materialize and could not save the market from an eventual collapse. Velez thinks the crypto market is preparing for a cleansing flush-out before the next bull run in 2024.

Ecks, a respondent to Velez’s post, noted that Changpeng Zhao, CEO of Binance, already claimed that the exchange has no loans. If that is the case, Ecks questioned the possibility of liquidation.

Velez responded by noting that such claims by Zhao may be a spun-up story to sustain investors’ confidence, especially the newbies. According to Velez, that is the name of the game “Spin up a coin out of thin air, sell it to noobs, build up a community around it, then leverage it to get real stuff.”

BNB traded for $209.5 at the time of writing after bouncing off a local low at $203.9 in the past 24 hours. The Binance ecosystem’s coin opened the month at $223.8 and has lost about 6.3% of its value in September so far.