Crypto Guru Who Predicted 2022 Crash Sounds Alarm on Bitcoin

A well-known cryptocurrency analyst who correctly foresaw the 2022 market meltdown is now warning that the price of bitcoin (BTC/USD) might be approaching a local peak.

According to analyst Capo, who goes by a different name, some signs point to a potential decline in Bitcoin’s value soon. The expert, who is known for making accurate market predictions, expressed their worries about the present direction of Bitcoin. The cryptocurrency specialist mentioned symptoms of an approaching correction in a recent Telegram message, including reduced momentum and overextended positive mood.

Current Status

After an extended bad market, Bitcoin has lately seen an important revival, rising above $37,000. The asset’s strong rally, the analyst cautions, may be waning, making it vulnerable to sudden drops. Capo contends that traders ought to be cautious and ready for any turbulence.

Capo still sidelined, send Bitcoin to 100k swiftly pic.twitter.com/U8Ot5Trh2T

— Teddy (@TeddyCleps) November 12, 2024

“I haven’t been in the market for a few weeks. Right now, it makes no difference if Bitcoin hits $98,000, $99,000, or $100,000. Capo wrote in the piece that the market could completely follow this trend, and the local top could happen at any time.

Capo lists a number of factors, such as the fact that pro-crypto U.S. President-elect Donald Trump won’t take office until January 20th, as reasons why he thinks a market correction is likely.

Capo gave a few explanations for his caution regarding the Bitcoin trend.
Here, sentiment is rather bullish. A huge amount of retail is investing in memecoins. It’s unhealthy that the memecoin rally feels overextended. The market as a whole will probably be impacted by the impending significant drop. Trump remains out of office.

Despite claiming that the transition will be “smooth and in a peaceful way,” the Democrats, who still hold the reins of power, are already attempting to start a major conflict. I think this is a last-ditch effort to impose martial law or put Trump in a difficult situation,” Capo wrote in the post.

Additionally, the US government owns 208,109 Bitcoin, or $20.15 billion, Capo continued. Authorities just gave them permission to sell Silk Road Bitcoin, most likely through auctions or slow sales. To be honest, it wouldn’t be shocking if they timed it to depress Bitcoin values and harm the reputation of the incoming administration, or simply to ensure that they don’t leave those Bitcoins for them to utilize.

Why It Is Important?

Bitcoin’s supporters point to its long-term potential as a hedge against inflation and economic uncertainty. It helps explain why it continues to dominate the cryptocurrency market despite the cautious outlook. Positive regulatory developments and institutional acceptance strengthen the positive argument.

This most recent caution serves as a reminder to investors of the fundamental volatility of the cryptocurrency industry. Even though Bitcoin has previously exceeded expectations. It is managing the market requires an awareness of market dynamics and the ability to adjust as necessary.