An analyst known for predicting the market collapse of 2022 is now warning that a major black swan event could have a significant impact on altcoins leading up to the US election.
Sharing insights with his 105,000 subscribers on his Telegram channel, the pseudonymous crypto analyst Capo suggests that OTHERS, a metric that monitors the market cap of all cryptocurrencies excluding stablecoins and the top 10 coins, might experience a substantial decline during the election period.
Capo refrains from speculating on the exact nature of the black swan event but indicates that it could present a prime buying opportunity.
“Quick update:
As previously mentioned, various factors could trigger a black swan event before the US election. This could result in an average 35% drop for altcoins, with major caps facing a 25-35% decline and low caps potentially plummeting by 40-60%.
Once again, this would likely serve as a final shakeout before a genuine altseason commences. Therefore, if such a scenario unfolds, be prepared and refrain from panic.
Stay cautious.”
In a recent update on Telegram, Capo indicates that the likelihood of this scenario has increased, prompting him to trim his altcoin holdings as a precaution.
“Chances of this scenario playing out have risen.
I have divested some altcoins to reduce my market exposure, despite having hedged my positions.
If this situation does not materialize, there is no harm in re-entering trades later. However, the prevailing market conditions suggest significant fragility at this point.”
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