The crypto market correction in early June wiped out most of the gains from May within days. Foreign media reports that DonAlt, an analyst who gained attention in 2024 for accurately predicting XRP's surge, believes that market sentiment is now low and the trading environment is far more complex than in the past.
The previous gains were wiped out within five days.
The report noted that during the June correction, the total market capitalization of the cryptocurrency market declined by 15.21% in five days. Among them, XRP fell by 16.99%, and Bitcoin fell by 17.78%.
DonAlt believes the current market problem isn't just about price declines, but more importantly, a change in how money is being used. The crypto market previously relied more on sector rotation and risk appetite, but now it's influenced by more external factors.
Increased interference from derivatives and ETFs
According to him, market attention is shifting from the assets themselves to "company-level noise." Traders not only have to deal with price volatility, but also with highly leveraged derivatives, the increasing number of ETF products, and the risk that smart contracts may be vulnerable to AI-assisted attacks.
He believes that the past rise in crypto assets was more based on market sentiment than on traditional fundamental valuations. Now, with increased external interference, it has become significantly more difficult for ordinary investors to hold positions.
The Zcash crash is seen as a case study of risk.
The report cited an example: Zcash recently plummeted 48.4% in a single day after a critical vulnerability was discovered in its Orchard pool. This vulnerability was reportedly discovered using the Claude AI assistant.
DonAlt stated that he would not immediately enter the market due to such a sharp drop, because after trust in the code has been damaged, he does not see a clear path for projects to restore confidence in the short term.
He hasn't turned bullish on the overall market either. While some Wall Street funds have begun buying on dips, he stated he won't easily take risks in the current environment. According to him, he would only consider resuming full-scale buying if Bitcoin closes above $71,000 this week.
