The cryptocurrency market took yet another major hit on Saturday when Bitcoin (BTC) dropped through the $4,000 psychological support level, plummeting as low as $3,600 in recent trading before settling around $3,780.
While bearish bets and price targets are beginning to pile on, ShapeShift CEO Erik Voorhees believes that the current market action is indicative of the “euphoria stage” for those short on the market.
The collapse is simply the euphoria stage of the bears.
— Erik Voorhees (@ErikVoorhees) November 25, 2018
Essentially, the latest market selloff is the opposite of the investor euphoria seen during runaway bull markets when the prevailing market narrative is that nothing will stop cryptocurrencies from reaching further all-time highs.
The market’s current price action will likely bring an additional wave of capitulation speculation, as investors continue to attempt to try and guess the bottom.
The AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens, is currently down 13% to fresh all-time lows. Additionally, most major altcoins are showing 24-hour losses in the 10-20% range.
More: Erik Voorhees Tweet
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.