The famous trader known as "Capo of Crypto" has issued warnings about a potential major collapse looming on the horizon that could affect the price of Bitcoin, indicating the possibility of a price drop to around $70,000 soon.
Despite Bitcoin's current price remaining above $100,000, Capo of Crypto believes that unseen movements behind the scenes, along with escalating global tensions, could break this critical psychological level and drive the market into a panic sell-off.
Although Bitcoin is currently hovering above $108,000, most altcoins have faced significant losses recently, with declines ranging from 30% to 50% from their peaks recorded in May.
Capo of Crypto confirms that these declines have not been surprising to him, as he has intensified his short positions, directing his focus towards those more fragile cryptocurrencies.
What concerns the famous trader even more is that the price of Bitcoin has not seen a significant rise despite ongoing institutional buying, which has led him to suspect that large investors might actually be engaging in silent selling at these high levels. He describes the situation as "strange," referring to the disconnect between price behavior and investment flows.
Amid these grim expectations, other indicators have emerged that cast further uncertainty on the scene, most notably the return of activity from old Bitcoin wallets dating back to the "Satoshi" era after 14 years of dormancy, where over 80,000 Bitcoins equivalent to $8.7 billion were transferred. While it remains unclear whether these amounts will actually be sold, Capo sees the return of these wallets as a sign of distribution intent rather than accumulation.
According to his analysis, a clear break of Bitcoin’s price below the $100,000 level could trigger a drop to the next support levels between $92,000 and $93,000, with the possibility of sinking deeper to levels between $60,000 and $70,000, while altcoins could collapse by another 80%.
The risks are heightened by geopolitical tensions between China and Taiwan, where any disruption in the semiconductor supply chains in Taiwan could trigger a widespread shock in global markets, putting cryptocurrencies in the crosshairs of unforeseen disturbances.
As of now, Bitcoin is trading higher at $108,000, while its market cap is approximately $2.16 trillion. But according to Capo of Crypto, these figures may not hold for long against what he describes as "the coming big crash."
