Black Swan Event Could Drop Altcoins By 60% During Election Week
During the election week, the market can be associated with unexpected events, which are often called “black swans”. In a recent Telegram post, a crypto analyst known as CryptoCapo TG highlighted the threat of a black swan event ahead of the US election, which could see an average 35% drop in altcoin prices.
It predicts that large-cap cryptocurrencies could experience a 25% to 35% drop, while small-cap coins could see steep drops of 40% to 60%. This expected decline is seen as a final shake-up, designed to remove many unconfident investors before the start of a significant alt-season period.
Are we headed for a potential crypto crash? Let's dive in to find out how it will affect the movement of altcoins in the coming months.
Altcoins for the “final shakeout” bracket
CryptoCapo predicts that large-cap altcoins, including TG Ethereum, Binance Coin and Solana, could see a 25% to 35% price drop, while small-cap assets could be hit harder, with a 40% to 60% drop. He described this expected fall as the “last shakedown,” meant to dissuade unconfident investors before a bull run or altseason, during which altcoin prices typically rise.
Brad Garlinghouse speculates that the next black swan event in the crypto industry could be triggered by a sudden change in dynamics that disrupts the entire sector. Chris Larson shares the same view, which may be the cause of the liquidity problem, which can have a significant impact on the market. Both Ripple executives seem to believe that the next major event will catch the industry off guard and change it in unexpected ways.
Despite warnings from Capo, one crypto analyst, Lana Quinn, is bullish, suggesting that bearish sentiments could signal a bullish setup for new all-time highs (ATHs). With both Capo and Cramer bearish market sentiment could not be better for the rally.
Strategies for investors
In response to the upcoming volatility, CryptoCapo TG advises investors to mentally prepare, optimize their portfolios and consider a HODL strategy for long-term prospects. Access to information on macroeconomic conditions and global developments is critical as these factors can have a significant impact on market sentiment. In the end, even if the major fall in the crypto market is real, it gives investors an opportunity to strengthen their strategies and prepare for a significant advance in the future.
Given the current situation and the presidential candidates' interest in crypto assets, this year's black swan event countdown is positive for altcoins, with BTC's dominance still at 60%, which is favorable for altcoins.
