A well-known market commentator, operating under the name Capo, has issued a warning to his 102,828 followers on Telegram about a possible decline in Bitcoin‘s price. He cautioned that the cryptocurrency could reach a local peak soon, leading to a significant pullback that may negate recent gains.
What Factors Could Trigger a Market Correction?
Capo suggests that several elements could contribute to a market correction. A notable factor is the anticipated inauguration of Donald Trump, a candidate known for his crypto-friendly stance, on January 20. This event is prompting speculation about its impact on Bitcoin’s trajectory.
How Might Government Holdings Affect Bitcoin Prices?
The analyst pointed out that the U.S. government possesses a substantial amount of Bitcoin—208,109 BTC—which may soon be sold, potentially impacting market prices negatively. Capo also mentioned that an increase in the strength of the dollar is causing Bitcoin’s growth to slow and that some altcoins are struggling against key resistance levels.
Currently, Bitcoin is valued at approximately $98,994. Capo’s observations indicate that a market pullback could occur at any time, prompting traders to remain vigilant.
- Capo warns Bitcoin may soon peak.
- The U.S. government’s Bitcoin holdings could pressure prices.
- Market sentiment is overly optimistic, particularly with meme coins.
- Strengthening dollar correlates with Bitcoin’s slowed rise.
Traders are advised to exercise caution and stay informed about ongoing developments in the cryptocurrency space to make informed decisions regarding their investments.
