Crypto trader Capo of Crypto reiterates the serious risk of Bitcoin falling to $70,000. This article explores the reasons behind his bearish forecast.
Bitcoin Price and Altcoin Declines
While Bitcoin hovers around $108,000, most altcoins have seen significant losses, dropping 30% to 50% from their May peaks. Capo noted that this decline was not a surprise, and he continues to bet on a downturn, especially focusing on altcoins he believes have more downside. He finds it odd that, despite strong institutional demand, Bitcoin's price hasn't surged. 'Something feels off,' he says.
Activation of Old Bitcoin Wallets
Several old Bitcoin wallets from the Satoshi era have suddenly come alive, moving over 80,000 BTC, valued at nearly $8.7 billion, after 14 years of dormancy. It's unclear if these coins will be sold, but Capo perceives this as a sign that large holders might be distributing rather than accumulating at current prices.
Global Risks and Their Impact on the Market
Capo points to the China-Taiwan tensions, asserting that the situation is quietly reaching a dangerous point. Any disruption in Taiwan’s vital chip supply could rattle global markets and push investors into panic, impacting cryptocurrencies as well. Currently, Bitcoin is shy of its all-time high, trading around $108,912 and showing a 1% increase in the last 24 hours, with a market cap hitting $2.16 trillion.
With the market situation remaining uncertain, Capo's forecasts may indicate significant changes in the near future. Investors should closely monitor trends and potential local and global risks.
