Crypto Crash Is A Forced Crypto Seller Unwind, | Crypto News
Glassnode co-founders Jan Happel and Yann Allemann, who publish under the @Negentropic deal with on X, argue that the current crypto crash is being pushed not by a broad narrative flip, but by a single, systematic source of promote strain whose footprint is most seen in Bitcoin and is spilling into the broader complicated. Their core assertion is categorical: “What’s happening in Bitcoin right now isn’t a narrative shift: it’s a mechanical unwind.” In that framing, the tape is reflecting the pressured exit of one participant fairly than an natural repricing of crypto risk.
Why Is The Crypto Market Crashing?
Negentropic’s thesis begins with momentum indicators behaving in methods they are saying are inconsistent with “natural markets.” They be aware that “the 1D MACD just printed a new all-time low… yet price is only down ~33% from the highs,” and add, “This doesn’t happen in natural markets. You only get this when someone is dumping in a straight line.”
They pair that commentary with capitulation-like oscillators that aren’t accompanied by the standard macro or leverage shock. As they put it, RSI is close to capitulation, “but there’s no macro stress, no credit shock, no leverage detonation, no ETF outflows.” The mismatch issues to their conclusion: “It’s extreme momentum without a catalyst: classic signature of mechanical selling.”
They then distinction today’s setup with prior episodes where MACD and RSI reached comparable extremes. In those historic circumstances, Negentropic says, “Price was down 60%, derivatives were blowing out, funding was deeply negative.” By distinction, their read of the current is that confirming stress isn’t there. “ETFs remain net positive, their cost basis is still intact,” they write, and they emphasize that “long-term holders are removing supply aggressively.”
They also level to cross-crypto resilience: “Solana ETF inflows are steady, altcoins are holding up relatively well vs btc & eth,” and “eth is holding stronger than btc.” For Negentropic, those relative-strength indicators are the inform that this shouldn’t be a systemwide risk-off event. “If this were real sentiment, all of that would be breaking. It isn’t,” they conclude.
Flow regularity is the other pillar of the Glassnode co-founders’ case. They describe a sample that they are saying has repeated since October 10: “Same timestamps, same venue-specific thinness, same lack of reflexive bids.” The implication is mechanical intent fairly than discretionary trading. “It’s a schedule, not a market,” they write, claiming “21 days of consistent toxic flow.” That sequence, in their view, aligns with “one explanation”: “a liquidity provider or fund was structurally damaged on October 10th,” and “the entity tied to that failure has been reducing risk in a forced, rules-based manner.”
Independent tape watchers are describing a remarkably comparable cadence. Front Runners (@frontrunnersx) studies that a large vendor on Binance has been hitting the market with clock-like consistency. Over “two weeks straight,” they are saying, the entity “hit the sell button exactly at 9:30 EST, every US market open, without fail.”
They add that “kind of consistency usually points to a sophisticated actor operating under specific mandates or time windows,” and that it appears to be like “less like random flow and more like a single entity (or a tightly-coordinated group).”
Macro analyst Alex Krüger expands on how that may manifest across venues. He suggests the vendor might be “dumping during US hours via a broker or OTC desk that employs smart order routing or hedging strategies across multiple venues.” In his view, the dominance of Binance prints doesn’t require Binance to be the origin. “Most volume naturally” would circulation there, he argues, “since it’s where the bulk of the liquidity resides.”
Krüger also highlights venue asymmetries that match a routed-flow story: he has seen “relatively little spot selling routed via Coinbase this week,” while noting “extraordinary levels of spot selling via Bitfinex.”
Will The Crypto Crash Be Short-Lived?
Delphi Ventures founding companion Tommy Shaughnessy focuses on the urgency implied by the tempo. If the circulation has been current since 10/10, he writes, “the speed at which they’re selling BTC is pretty crazy.” He interprets that as compulsion fairly than strategy: “Means they are price insensitive and need to exit, fast.” Shaughnessy characterizes the transfer as “violent,” but provides a key qualifier constant with Negentropic’s finite-seller framing: it’s possible “short lived because it’s not orderly.”
If there may be a physique from 10/10 the velocity at which they’re promoting $BTC is fairly loopy
Means they’re price insensitive and need to exit, fast. (Someone had that chart of all pink candles for days)
Violent but means it’s hopefully short lived because it’s not orderly https://t.co/kaJAKh5Z4M
— Tommy (@Shaughnessy119) November 21, 2025
Multicoin Capital founder Tushar Jain likewise describes what he sees as pressured liquidation habits. “It feels like a big forced seller is in the market,” he writes, including, “We are seeing systematic selling during specific hours.” Jain explicitly ties this to the same October window Negentropic flags, calling it “probably a consequence of 10/10 liquidations,” and says it’s “hard to imagine this scale of forced selling continues for much longer.”
He also situates the second within a longer unwind course of, recalling a lesson from prior cycles: “it takes some time for all the bankruptcies to reveal themselves after a big liquidation flush like this,” because “shops are running around trying to figure out what their exposure to insolvent counterparties is.”
It appears like a big pressured vendor is in the market. We are seeing systematic promoting during particular hours. Probably a consequence of 10/10 liquidations. Hard to think about this scale of pressured promoting continues for for much longer. https://t.co/JO6kRmJUUb
— Tushar Jain (@tushar_jain) November 19, 2025
Taken together, the sources are presenting a coherent, internally constant read: crypto’s draw back is being dominated by a single, time-boxed, price-insensitive vendor whose execution sample is systematic enough to warp momentum indicators and intraday construction.
Negentropic’s backside line shouldn’t be merely descriptive but interpretive: “This is not capitulation. This is not a trend break.” It is, instead, “a constrained unwinding through a fractured market.” And because mechanical sellers end when stock or mandate ends, the Glassnode co-founders argue that when it does, “the rebound will likely be far sharper than the decline that preceded it.”
At press time, the full crypto market cap was at $2.83 trillion.
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