Bitcoin could sharply drop to 70,000 USD due to numerous significant risk factors and hidden trading activity of whales.
Although Bitcoin remains around 108,000 USD, many altcoins have dropped by 30% to 50%. Long-dormant Bitcoin wallets have suddenly come to life, while tensions between China and Taiwan are escalating, threatening the global cryptocurrency market.
MAIN CONTENT
Altcoins have dropped 30% – 50% from their May peak, signaling upcoming risks.
Bitcoin whales may be quietly selling as the price hovers around 100,000 USD.
The China-Taiwan tension is a geopolitical factor that could trigger a major sell-off.
Altcoins have dropped 30% – 50% from their recent peak, while Bitcoin remains high.
Capo, a seasoned cryptocurrency trader, asserts that altcoins have dropped significantly by 30% to 50% from their May peak, aligning with his analysis forecast, and he continues to increase his short positions on many altcoins. Although Bitcoin is trading around 108,000 USD, the price stability is mainly due to buying flows from institutional investors looking to hoard BTC into reserves.
Notably, despite strong buying demand, Bitcoin's price has not surged, leading Capo to suspect the silent selling activity of Bitcoin whales at this important price level.
Long-dormant Bitcoin wallets have become active again with a coin value of nearly 8.7 billion USD.
The phenomenon of Bitcoin wallets from the Satoshi Nakamoto era suddenly becoming active, moving over 80,000 BTC after 14 years of dormancy, is seen by Capo as a sign that large whales are inclined to distribute assets rather than hoard them. Such large coin movements create significant pressure on the market and could signal a major price drop ahead.
"The unexpected activity from early Bitcoin wallets may signal whales' preparations to sell when prices remain high."
Capo, cryptocurrency trader, 10/2024
Bitcoin could drop to 70,000 USD if it loses the 100,000 USD support level.
According to Capo, if Bitcoin clearly falls below 100,000 USD, the price will continue to drop to the next support area of about 92,000–93,000 USD. In a worse scenario, BTC could plunge deeply to 60,000–70,000 USD. This would also lead to the possibility of altcoins dropping an additional 50% to 80% due to panic selling in the market.
How does the China-Taiwan tension affect the price of Bitcoin?
Capo emphasizes that the escalating conflict between China and Taiwan could be the main driver of market instability. Taiwan is a crucial chip manufacturing hub, and disruptions in the supply chain will shake the global financial markets as well as cryptocurrencies. Investors may react by fleeing risky assets like Bitcoin, leading to a strong sell-off wave.
"Geopolitical instability around Taiwan has the potential to spark an unprecedented wave of cryptocurrency sell-offs."
Nguyen Van Minh, cryptocurrency financial expert, 2024
Factors Impacting Bitcoin Impacting Altcoins Altcoins' Price Drop Stabilizing Price Due to Institutional Hoarding Dropped significantly by 30% – 50% from the May peak Whale Activity Whales silently selling around 100,000 USD Increased risk of deep drops due to lack of liquidity Geopolitical Tension (China – Taiwan) Risk of significant drops if chaos occurs Severe decline coupled with panic selling
Frequently Asked Questions
How much have altcoins dropped from their May peak? Altcoins have lost 30% to 50% in value, according to trader Capo's analysis. Why hasn't the price of Bitcoin increased despite many institutions buying in? Large whales may be secretly selling, keeping Bitcoin's price below 100,000 USD. What does the activity of long-dormant Bitcoin wallets mean? It is a sign of coin distribution by whales, indicating the possibility of a forthcoming sell-off. What geopolitical risks are currently affecting Bitcoin? The China-Taiwan tension poses significant risks to the global cryptocurrency market. How low can Bitcoin drop if it loses the 100,000 USD mark? Bitcoin could drop to the 70,000 USD region, along with altcoins plummeting sharply.
Source: https://tintucbitcoin.com/bitcoin-ve-70-000-usd-canh-bao-ban-thao/
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