Bitcoin Bear Market Expectations: Sharp Drop Warning

The crypto market continues to attract the attention of investors with its recent volatile trends. Especially the statements regarding the future of Bitcoin (BTC) reveal serious risks for new investors. QwQiao, co-founder of Alliance DAO, emphasized in a post on his social media account that the next bear market may be significantly harsher than expectations.

QwQiao stated that the large number of investors entering the market recently are engaging in trading through spot purchases and exchange-traded funds (ETFs) without deeply understanding cryptocurrencies, which poses serious risks. He expressed that this situation could lead to adverse outcomes, similar to past cycles, and urged these investors to liquidate their positions. QwQiao anticipates this process will occur with an additional drop of approximately 50% in prices.

At this point, other experts like Chris Burniske are providing similar assessments. Burniske highlights the DAT model, which represents the digital assets held on the balance sheets of crypto companies, and indicates that the selling pressure from these companies has just begun. He underscores that after the recent aggressive rise in prices, a downward movement at the same pace could also occur.

These warnings stand out at a time when the institutional share and the number of new investors in the market are increasing. It is suggested that investors should be more cautious regarding risk management. It is noted that institutions could gain significant profits for a long-term structure in the event of a potential sharp correction.

In conclusion, a bear market that may occur in Bitcoin indicates a critical turning point that investors need to monitor. It becomes evident that investors should closely follow market dynamics and the effects of these movements.