A well-known trader of cryptocurrencies who goes by the pseudonym Capo has been pessimistic about the cryptocurrency market for months and has predicted the demise of Bitcoin, Ethereum, and other major cryptocurrencies.
On the microblogging platform Twitter, Capo, who is well-known for being a crypto pessimist, posted a lengthy message to his more than 750,000 followers in which he predicted significant contractions for Bitcoin and Ethereum. His words are that despite the cryptocurrency market’s recovery and prices being “still at a major resistance,” his analysis has not faltered.
The trader added that he has previously stated and maintains that recent cryptocurrency price movements “appear manipulated” and that a capitulation event is “still likely,” with $12,000 for BTC and $500-$700 for ETH as the primary targets. Altcoins would drop 60-80% by and large.” A timetable for these occurrences was not provided by the analyst.
Additionally, Capo cited well-known altcoins that, in his opinion, are on the edge, exhibiting signs of vulnerability, or have already lost ground in relation to this year’s bull run. His anticipation is that they are destined for new nadirs.
The trader went on to say that he is meticulously building up short positions in a few cryptocurrencies, such as Polygon ($MATIC), Solana ($SOL), and Binance Coin ($BNB). The U.S. Securities and Exchange Commission (SEC) has alleged that these cryptocurrencies are securities in lawsuits against Binance and Coinbase. These lawsuits have recently been the subject of scrutiny.
The fictitious analyst went on to say that a number of altcoins have “already made a new low below that of 2022, and some are even reaching Covid lows.” He stated that some have “retraced much of this year’s bear market rally and are about to make new lows.” As a result, he has been constructing short positions against them with minimal leverage.
He stated that the altcoins he believes could drop more include $BNB, $TRX, $SOL, $AAVE, and $MATIC and that he is “adding size at key resistances.” “All these positions are Except for the TRX one, all were in profit, he said.
According to CryptoGlobe, BlackRock’s recent filing for a spot Bitcoin ETF may have sparked a race among some of the world’s largest financial institutions to list a spot Bitcoin ETF in the United States, which could open the door to a $15 trillion crypto boom.