Experts Warn: Crypto Market Could Be Preparing for a Deeper Crash

Market Snapshot
After months of volatility and failed breakout attempts, the crypto market appears to be entering a phase of “structural fatigue”, experts say.
Bitcoin (BTC) has struggled to hold key support above $68,000, while Ethereum (ETH) and top altcoins like Solana (SOL) and XRP have retraced between 10% and 20% over the last month.

According to Bitcoin Magazine NL, analysts warn that the current setup — marked by declining on-chain activity and lower liquidity inflows — resembles the pre-correction environment seen in mid-2022 and late 2023, both of which preceded sharp drawdowns.

Expert Analysis
Crypto strategist Jeroen van Dijk told Bitcoin Magazine NL:

“The market is quietly resetting. There’s no panic yet, but the data shows a clear decline in speculative momentum — and that often comes before larger market adjustments.”

He notes that open interest in derivatives markets is falling, while stablecoin inflows to exchanges — typically a bullish sign — have slowed dramatically since November.

Another red flag: whale wallet activity is decreasing, suggesting that large investors are waiting for lower entry points or sitting out entirely amid macro uncertainty.

Macro & Liquidity Pressures
Beyond crypto-specific factors, global liquidity conditions are tightening again.
Central banks in the U.S. and Europe remain cautious about rate cuts, and China’s liquidity injections, which briefly boosted risk assets earlier this quarter, have not yet translated into sustained global demand.

At the same time, geopolitical tensions and shifting investor focus toward AI and traditional equities are diverting speculative capital away from crypto — adding more pressure on digital asset valuations.

Experts say that if liquidity continues to tighten, Bitcoin could retest lower support levels near $60,000–$62,000, with altcoins facing steeper percentage declines.

Market Sentiment
Despite the bearish tone, some analysts argue that a deeper correction could be healthy for the long-term structure of the market.

“Corrections like these flush out weak hands,” said one trader. “If Bitcoin can find support near $60K and build a higher base, it sets up for a more sustainable rally later in 2026.”

Social sentiment on X (formerly Twitter) also reflects mixed emotions — some traders calling for patience, others warning that over-leveraged positions could accelerate the sell-off if key supports fail.

Future Outlook
While a short-term dip remains possible, experts emphasize that the long-term fundamentals of the crypto sector remain strong — driven by institutional adoption, Bitcoin ETF inflows, and tokenization growth.

Analysts expect volatility to continue through Q1 2026, but say the next major accumulation phase could follow once liquidity stabilizes and retail sentiment resets.

In other words, the market might indeed be “preparing for a crash” — but also quietly laying the foundation for the next bull cycle.