Crypto Market Crash Shows Signs of More Declines Ahead

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The recent crypto market crash has rattled investors, wiping out billions in value and sending major assets into steep declines. Sentiment across the industry has turned sharply bearish, with many traders questioning whether the worst is still ahead. 

As panic rises, a new wave of analysis suggests the downturn may not be just another correction but the beginning of a much deeper structural reset. At the center of this discussion is Alliance DAO co-founder QwQiao, whose warnings have intensified debate around the future of the current cycle.

Analyst Warns a Much Harsher Bear Market May Be Forming

QwQiao believes the crypto market is heading toward a far more painful phase than most expect. He argues that a massive amount of “dumb money” new, inexperienced investors poured into digital assets and ETFs without fully understanding the risks. 

This influx, he says, has created a fragile setup where panic selling becomes far more likely during periods of deep volatility. According to him, the market may need to drop another 50% to flush out weak hands and rebuild a stronger foundation for the next supercycle.

His perspective is not rooted in doom but in the need to restore the market’s structural integrity. In past cycles, harsh washouts removed excess leverage and emotional retail holders, paving the way for healthier long-term growth. QwQiao believes a similar reset is now necessary.

Burniske Echoes Downside Risk With DAT Selling Warning

Adding to the broader bearish tone, Placeholder partner Chris Burniske warns that the market is entering a new phase of heavy DAT (digital asset token) selling. He notes that prices climbed rapidly and may unwind just as aggressively. One participant in the discussion pointed out that BlackRock’s IBIT ETF holders have an average cost basis near $80.5K, leaving many investors underwater.

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This increases the risk of forced selling from distressed firms and “zombie companies,” potentially amplifying downward pressure. Burniske’s comment that he has “been this way for a minute” signals his continued expectation of further selling.

Is a Deeper Reset Coming?

Collectively, these warnings paint a picture of a market still vulnerable to systemic selling pressure, especially from ETF investors who bought at higher levels. While no specific timeline is clear, on-chain analyst Ali Martinez highlighted that Bitcoin’s SuperTrend indicator on the weekly chart has flipped bearish once again, a signal that has accurately predicted major downturns for more than a decade. Historically, every time this indicator turns bearish, BTC has followed with a sizable correction.

This aligns with QwQiao’s view that the market may still face deeper pain and strengthens the broader sentiment that the current downturn is not simply emotional panic but also backed by long-term technical indicators flashing caution.

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