A cryptocurrency strategist who accurately predicted the Bitcoin bottom in 2022 has just warned that a group of large investors could become the 'spark' for the upcoming cryptocurrency winter, and it will be as fierce as the worst downturns in the past.
Specifically, the analyst known as DonAlt, who has over 670,000 followers on platform X, believes that companies holding Bitcoin in treasury will be the main cause of huge sell pressure in the next down cycle.
According to data from BitcoinTreasuries, there are currently more than 1,112,904 BTC – equivalent to over 117 billion USD – being held by private and publicly listed companies worldwide.
DonAlt asserts:
'Companies holding Bitcoin in treasury... will be the reason the next bear market becomes as brutal as previous cycles. No one can convince me otherwise.'
Will this year's 'winter' be as cold as in 2018?
DonAlt warns that the upcoming downturn is likely to be similar in scale to the bear market of 2018 – the time when Bitcoin fell from 20,000 USD to just 3,000 USD in a few months.
'Regardless of how high this cycle peaks, a drop of 70% to 80% is not impossible.'
Nevertheless, DonAlt remains optimistic in the short term, believing that Bitcoin is still in an upward trend. He also warns that if a critical support level is broken, the market could witness a strong correction.
'If BTC creates a new bottom below 101,000 USD, I can already imagine the price dropping to the 95,000 USD range, even 90,000 USD, as quickly as possible.'
According to data from Bitcoin Magazine, BTC is currently trading around 106,673 USD, about 5% lower than the recently established peak of over 111,000 USD.
Although the market is currently leaning towards an upward trend, warnings from DonAlt are causing many investors to start considering defensive strategies, especially as major companies begin to show signs of taking profits after a prolonged accumulation period.
