In a recent message to his large Twitter following, the pseudonymous trader and crypto bear Capo shared his predictions for the future of digital assets. Despite this year’s rally, Capo remains bearish on crypto assets and warns that significant drops are on the horizon.
Capo specifically mentions Bitcoin (BTC) and Ethereum (ETH) in his message. He believes that Bitcoin will drop towards the $12,000 level, while Ethereum may dip to somewhere between $500 and $700. However, he does not provide a specific timeframe for these predictions.
Not only does Capo expect drops in the prices of Bitcoin and Ethereum, but he also anticipates an altcoin capitulation. He suggests that altcoins will lose more than half of their value on average. According to Capo, many altcoins are already showing signs of weakness or have retraced from this year’s rally and are poised to hit fresh lows.
To position himself for this market movement, Capo reveals that he is building short positions on several crypto assets, including Binance Coin (BNB), Solana (SOL), and Polygon (MATIC). These three assets have recently faced allegations of being securities by the U.S. Securities and Exchange Commission (SEC). Capo advises that he is using low leverage and adding to his positions at key resistances and in altcoins that he believes may drop further. While these positions are currently profitable, his TRX position is an exception.
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Capo’s cautionary predictions come amidst ongoing volatility in the crypto market. It is important to note that his views are his own and should not be considered as investment advice. Investors should conduct their own due diligence and consider the risks associated with high-risk investments in Bitcoin, cryptocurrency, or digital assets.
As always, it is crucial for market participants to stay informed and updated on the latest news and developments in the crypto space. Subscribing to email alerts or following trusted sources like The Daily Hodl can help individuals stay updated on market trends and potential opportunities.
In conclusion, the crypto trader Capo is warning market participants about the potential for massive drops in digital assets. He predicts that Bitcoin and Ethereum could experience significant declines, and expects an altcoin capitulation that could see these assets losing more than half of their value. Capo is positioning himself for these market movements by building short positions on select crypto assets. However, it’s important for individuals to conduct their own research and make informed decisions when it comes to investing in the volatile crypto market.
