As election week approaches, cryptocurrency markets are preparing for potential unexpected events, often referred to as “black swan” events. Crypto analyst CryptoCapo TG recently warned on Telegram that one of these rare, unpredictable events could occur before the U.S. election, potentially causing altcoin prices to drop by an average of 35%.
CryptoCapo TG predicts that large cryptocurrencies such as Ethereum, Binance Coin, and Solana could fall by 25% to 35%. Meanwhile, small cryptocurrencies could face larger drops of 40% to 60%. He described this potential downturn as a "final washout" designed to clean out less confident investors before a possible altcoin season - when altcoins typically surge.
Are we heading towards a potential crypto downturn? Let’s take a deeper look at how it will impact altcoin trends in the coming months.
Ripple executives speak
Ripple CEO Brad Garlinghouse believes the next black swan event in the cryptocurrency space could stem from a sudden, game-changing disruption that affects the entire industry. His co-founder Chris Larsen believes a liquidity crisis could spark this scenario, causing a ripple effect throughout the market. Both leaders expect the next big event to catch the cryptocurrency world off guard and reshape it in unexpected ways.
While CryptoCapo TG’s forecast is cautious, another analyst, Lana Queen, sees a glimmer of hope. She believes that the current bearish sentiment could actually set the stage for new all-time highs. Given that both Capo and Jim Cramer have expressed negative views, she thinks the market could be about to rebound.
Investor Strategy
In response to the uncertain outlook, CryptoCapo TG advises investors to be mentally prepared, diversify their holdings, and consider adopting a HODL strategy for long-term gains. It is crucial to understand macroeconomic trends and global events, as these factors can have a significant impact on market sentiment. While cryptocurrencies do have the risk of a sharp drop, this may also be an opportunity for investors to perfect their strategies and prepare for the upcoming altcoin season.
Will this year’s black swan events be good for altcoins?
Judging from the current situation and the growing interest of presidential candidates in crypto assets, the number of black swan events this year has had a positive impact on altcoins as BTC dominance remains at 60%, which is good for altcoins.
