Altcoins Could Fall Nearly 80% If History Repeats – Coin Bureau Outlines Timeline – Coinpedia – Fintech & Cryptocurreny News Media
Altcoin Sherpa, a well-known analyst, expressed his views regarding the native Lido token DAO (LDO) to his 182,400 Twitter followers. He said the token could drop 64% from its current price.
Following in his footsteps, the host of popular YouTube channel Coin Bureau, Guy, a pseudonymous analyst, also warned his 2.1 million YouTube subscribers of an interest rate hike and the major impact it could have on crypto asset prices due to recent Federal Reserve actions
According to reports, the Federal Reserve will accelerate the sale of US Treasuries and mortgage-backed securities along with other assets. If the prices are lower, it will definitely lead to higher interest rates.
A major hit in sight?
As the Federal Reserve is keen to sell these assets which are worth billions of dollars, the market may be further affected as there are not enough buyers to handle this shock and as a result prices will fall to a large extent. .
As a result, the interest rate will rise, which investors will not be able to absorb, resulting in a major market drop. This also happened in 2018 when the Federal Reserve began selling assets off its balance sheet. As a result, the S&P 500 index rose to 2,940 points and lost 20% of its value.
The Coin Bureau host expresses concern that a repetitive story pattern could create problems for digital assets.
“Since cryptocurrency is highly correlated to the stock market with more volatility, this could translate to a 40% decline for the largest coins and tokens, with 60% or even 80% declines for most altcoins. mid-cap and small-cap, with the absolute bottom being early next year.
BTC will remain relatively unimpacted
According to the Coin Bureau host, the Bitcoin price will not be impacted and BTC will suffer the least loss compared to other Altcoins.
“Even then, the losses could still be more than most crypto holders can afford.