Introduction
Jacob King, a crypto analyst from WhaleWire, has issued a serious warning. Moreover, he believes Bitcoin and the entire crypto market might face a long bear market, which means prices could drop and, as a result, stay low for years.
Bear Market Warning from Analyst Jacob King
In a recent post on X, King shared his reasons for the warning. However, He pointed out three major problems that could harm the crypto market:
MicroStrategy’s BTC buys are getting smaller and smaller, facing extreme risks. El Salvador is reversing its Bitcoin policies, BlackRock is dumping record-high amounts of BTC, and Tether mysteriously hasn’t minted anything new in over 20 days, causing BTC to stagnate.
It’s the…
— Jacob King (@JacobKinge) January 3, 2025
- MicroStrategy’s Bitcoin Purchases:
King said MicroStrategy, a company that buys a lot of Bitcoin, is slowing down its purchases. Furthermore, he called their Bitcoin-focused business model a “giant scam” in the past. According to him, the company’s strategy is risky and, therefore, may fail.
- El Salvador’s Bitcoin Policies:
El Salvador, a country that made Bitcoin legal in 2021, seems to be shifting away from its Bitcoin plans. King sees this as a sign that governments may lose interest in Bitcoin as a national asset.
- BlackRock’s BTC Sales:
BlackRock, one of the world’s largest investment firms, has sold large amounts of Bitcoin. King believes this is another warning sign that big investors are pulling back from the crypto market.
Tether Pausing Minting
King also pointed out that Tether, a major stablecoin issuer, has stopped minting new tokens for more than 20 days. This pause happened while Bitcoin’s price has been stuck at the same level. Stablecoins like Tether are often used to buy Bitcoin, so a slowdown in minting could mean less demand for BTC. King called this period “the calm before the storm,” warning that a market crash might be on the way.
Bitcoin’s Current Status
Right now, Bitcoin is trading at $98,387.00. Some investors remain optimistic, hoping for the price to go higher. However, King thinks this optimism is driven by greed rather than solid evidence.
Warning to Investors
King believes the crypto market’s troubles could get worse if the stock market crashes. He said the two markets are connected, so problems in one could affect the other. He urged investors to think carefully about their risks. According to him, now is not the time to hold onto assets without reassessing the situation.
What a Bear Market Could Mean for Investors
If King’s predictions are correct, the crypto market could face big challenges. A bear market would make it harder for investors to profit and could cause some to lose money. At the same time, his warning gives people a chance to prepare. By understanding the risks, investors can make smarter decisions.
How to Prepare for a Bear Market in Crypto
The crypto market is always changing, and no one knows for sure what will happen next. However, King’s concerns highlight the need for caution. Whether you’re a new investor or an experienced trader, it’s important to stay informed and think carefully before making decisions. Investors must brace for a possible bear market and reassess their strategies.
