Bitcoin’s 19% Plunge to $60K: What VanEck’s Expert Says Caused the Crash

Bitcoin has seen wild ups and downs, but the recent caught many by surprise. Last week, the price of Bitcoin (BTC) dropped a sharp 19%, hitting a low of around $60,000. This big fall left investors wondering: what went wrong? A top analyst from VanEck, Matthew Sigel, shared his clear take on the matter. He says it’s not one big event but a mix of problems hitting the market at once.

The Quick Drop: Numbers Tell the Story

Bitcoin was riding high before the crash. But in just days, it lost nearly a fifth of its value. Prices fell from higher levels down to the mid-$60,000 range. This wasn’t a slow slide – it was fast and painful.

One key sign of trouble was in the futures market. Open interest in Bitcoin futures went from $61 billion to $49 billion in a week. That’s over a 20% drop. Futures open interest shows how much money is bet on price moves with borrowed funds, or leverage. When it falls like this alongside the price, it points to . Traders were closing leveraged positions, which added selling pressure.

• Futures OI drop: $61B → $49B (20%+ decline)
• Bitcoin price fall: 19% to $60K low
• Result: Clean unwind, not panic selling

Sigel notes this was orderly. Leverage built up too much, and the market reset it naturally.

Miner Selling: AI Dreams Turn to Dust

Bitcoin miners play a big role in the network. They secure it and hold lots of BTC. But many miners tried to pivot to AI and high-performance computing. They sold GPUs and chased AI hype for new revenue.

Now, AI excitement is cooling. Funding for these projects is drying up. With Bitcoin prices falling too, miners can’t cover costs. They have to sell BTC to pay bills and keep lights on.

“As financing conditions tightened alongside Bitcoin weakness, miners faced increased pressure to sell Bitcoin to bolster balance sheets,” Sigel explained.

This selling from miners added fuel to the . It’s a reminder that miners aren’t just holders – their business needs affect supply.

Quantum Computing Fears Add to the Worry

Another factor Sigel points out is rising talk about quantum computing. These super-fast computers could one day crack Bitcoin’s encryption. Bitcoin uses ECDSA for signatures and SHA-256 for hashing. Quantum tech might break ECDSA, risking 20% to 50% of coins if private keys are exposed.

Investor chatter on this has grown. Even if developers say it’s not an immediate threat, the fear spooks markets. In a shaky time, any risk feels bigger.

Sigel calls the market “under siege from multiple directions.” Deleveraging, miner sales, AI fade, and quantum buzz – all hit together.

No Single Trigger: A Perfect Storm

What makes this drop different? No Mt. Gox dump or big hack. It’s a combo punch:

1. Collapsing leverage: Too much debt in trades unwound fast.
2. AI hype unraveling: Miners’ side bets failed, forcing BTC sales.
3. Quantum risks: Long-term worry gaining short-term attention.
4. Narrative shock: Shift from endless bull hype to reality check.

The says this multi-front attack explains the speed and depth of the fall.

A Buying Chance? Sigel’s Bullish Long View

Despite the pain, Sigel sees upside. The deep drop and leverage reset make prices attractive now. He says it’s a good spot to build positions for 1-2 years out.

Bitcoin’s four-year cycle still matters. Halvings drive supply shocks, and psychology follows. Sigel has been buying more BTC himself. He believes the reset clears weak hands, setting up for recovery.

Current setup: oversold, deleveraged, and tested. For patient investors, it could be a dip to buy.

What This Means for Crypto Investors

The shows crypto’s risks. Leverage amplifies moves. External narratives like AI can backfire. Long-term threats like quantum need watching.

Lessons:

• Use less leverage to avoid forced sells.
• Watch miner health – their sales impact price.
• Think cycles, not headlines.
• Diversify, but keep core BTC for believers.

Bitcoin has bounced from worse. After 2018’s 80% crash, it hit new highs. This 19% drop? Just noise in the big picture.

Looking Ahead: Recovery Signals

Watch these for rebound signs:

• Stable futures OI – leverage bottoming.
• Miner capitulation ends – less selling.
• Positive cycle catalysts – ETF flows, halving effects.
• Technical bounce – from $60K support.

Sigel’s view: turmoil creates opportunity. The by naming factors, helps us see clearer.

Stay informed, trade smart, and HODL through storms. Bitcoin’s story is far from over.

Bitcoin prices can change fast. Always do your own research before investing.