An analyst who accurately called the market collapse of 2022 says that a massive black swan event could crush altcoins ahead of the US election.
Writing to his 105,000 subscribers in his Telegram channel, pseudonymous crypto analyst Capo says that OTHERS, which tracks the market cap of all crypto assets excluding stablecoins and the top 10 ranked coins, could be headed for a massive drop during the election.
Capo doesn’t make any predictions on what exactly the black swan event could be but says it will likely be an optimal buying opportunity.
“Quick update:
As mentioned before, several factors could trigger a black swan event before the US election. This would cause a 35% avg. drop for altcoins, meaning that big caps could dump 25-35%, and low caps could dump 40-60%.
Once again, this would be a very last shakeout before a real altseason could begin. So if it happens, just be ready and don’t get scared.
Stay safe.”
In a more recent post on Telegram, Capo says the odds of such a scenario have now gone up, and that he’s preparing by shedding some of his altcoin holdings.
“Probabilities for this scenario have just increased.
I’ve sold some altcoins to reduce my exposure to the market, even if I was already covered with a hedge.
If this scenario doesn’t play out, there’s no issue in re-entering positions later. However, we can’t ignore the data – the market is showing significant weakness at this point.”
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Generated Image: Midjourney
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