Crypto Crash Driven by Forced Seller, Glassnode Co-Founders Assert

Glassnode co-founders Jan Happel and Yann Allemann, under the @Negentropic handle, suggest that the current crypto downturn is driven by a systematic source rather than a broad market sentiment shift. They attribute the decline primarily to forced selling, particularly in Bitcoin, not an organic repricing of risk.

Main Observations

Momentum indicators show patterns inconsistent with natural markets, indicating straight-line dumping.
No macroeconomic stress or leverage shocks are present, pointing to mechanical selling forces.
Historical comparisons reveal extreme indicators without typical market distress signs like negative funding rates.
Relative strength in altcoins and ETH suggests no systemwide risk-off event.

Market Dynamics

Consistent selling patterns since October 10th imply a structured, rules-based selling approach.
Large selling observed on Binance aligns with specific time frames, suggesting a sophisticated entity.
Macro analyst Alex Krüger notes asymmetrical selling across venues, highlighting significant activity on Bitfinex.

Potential Short Duration

The speed of selling implies urgency, viewed as compulsion rather than strategic action.
Delphi Ventures’ Tommy Shaughnessy and Multicoin Capital’s Tushar Jain expect the forced selling to be short-lived.
Past experiences suggest that after such liquidations, the market might rebound sharply once the selling concludes.

Overall, the prevailing view is that the downturn is driven by a single, systematic seller, with expectations of a potential sharp rebound following the end of this constrained unwinding process.

Total crypto market cap