A cryptocurrency strategist who accurately predicted the Bitcoin bottom in 2022 has warned that a group of large investors could become the "trigger" for the upcoming crypto winter, and it will be as brutal as the worst downturns in the past.
Specifically, an analyst with the nickname DonAlt, who has over 670,000 followers on platform X, believes that companies holding Bitcoin in their treasuries will be the main cause of enormous selling pressure in the next bear cycle.
According to data from BitcoinTreasuries, there are currently over 1,112,904 BTC – equivalent to over 117 billion USD – held by private and publicly listed companies globally.
DonAlt asserts:
"Companies holding Bitcoin in their treasury... will be the reason the next bear market becomes just as brutal as previous cycles. No one can convince me otherwise."
Will this year's "crypto winter" be as cold as in 2018?
DonAlt warns that the upcoming decline is likely to be of a scale similar to the bear market of 2018 – the time when Bitcoin fell from 20,000 USD to just 3,000 USD in a few months.
"No matter how high the peak of this cycle is, a decline of 70% to 80% is not impossible."
However, DonAlt currently maintains an optimistic short-term view, believing that Bitcoin is still in an upward trend. He also warns that if a key support level is breached, the market could witness a strong correction.
"If BTC creates a new low below the 101,000 USD mark, I can already imagine the price dropping to the 95,000 USD range, or even 90,000 USD, how quickly it would be."
According to data from Bitcoin Magazine, BTC is currently trading around 106,673 USD, approximately 5% lower than the recently set peak of over 111,000 USD.
BTC Price Chart | Source: DonAlt/Despite the market currently leaning towards a bullish 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 phase.
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Bitcoin could plummet 80% in the upcoming crypto winter.
A cryptocurrency strategist who accurately predicted the Bitcoin bottom in 2022 has warned that a group of large investors could become the "trigger" for the upcoming crypto winter, and it will be as brutal as the worst downturns in the past.
Specifically, an analyst with the nickname DonAlt, who has over 670,000 followers on platform X, believes that companies holding Bitcoin in their treasuries will be the main cause of enormous selling pressure in the next bear cycle.
According to data from BitcoinTreasuries, there are currently over 1,112,904 BTC – equivalent to over 117 billion USD – held by private and publicly listed companies globally.
DonAlt asserts:
"Companies holding Bitcoin in their treasury... will be the reason the next bear market becomes just as brutal as previous cycles. No one can convince me otherwise."
Will this year's "crypto winter" be as cold as in 2018?
DonAlt warns that the upcoming decline is likely to be of a scale similar to the bear market of 2018 – the time when Bitcoin fell from 20,000 USD to just 3,000 USD in a few months.
"No matter how high the peak of this cycle is, a decline of 70% to 80% is not impossible."
However, DonAlt currently maintains an optimistic short-term view, believing that Bitcoin is still in an upward trend. He also warns that if a key support level is breached, the market could witness a strong correction.
"If BTC creates a new low below the 101,000 USD mark, I can already imagine the price dropping to the 95,000 USD range, or even 90,000 USD, how quickly it would be."
According to data from Bitcoin Magazine, BTC is currently trading around 106,673 USD, approximately 5% lower than the recently set peak of over 111,000 USD.
Justin