Crypto Market Crash : Black Swan Event Could Slash Altcoins by 60% During Election Week

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In election week, the market may deal with unexpected events often referred to as “black swan” occurrences. In a recent Telegram post, a crypto analyst known as CryptoCapo TG highlighted the risk of a black swan event potentially occurring before the US election, which could lead to an average price drop of 35% for altcoins.

He predicts that large-cap cryptocurrencies may experience declines of 25% to 35%, while smaller-cap coins could see even steeper drops of 40% to 60%. This anticipated downturn is viewed as a final shakeout, designed to flush out less confident investors before a significant altseason can begin.

Are we heading towards a potential crypto downturn? Let’s dive in to know how it will impact the altcoins movement in the coming months. 

Altcoins to Brace for the “Finalshakeout”

CryptoCapo TG forecasts that large-cap altcoins, including Ethereum, Binance Coin, and Solana, may see price reductions of 25% to 35%, while smaller-cap assets could be hit harder, with declines ranging from 40% to 60%. He describes this anticipated drop as a “final shakeout,” intended to remove less confident investors before a potential bull run or altseason, during which altcoin prices typically soar. 

Crypto Community Reaction 

Brad Garlinghouse anticipates that the next black swan event in the crypto industry could be triggered by a sudden transformative change that blocks the entire sector. Chris Larsen shares a similar view, suggesting that a liquidity crisis could be the catalyst, potentially triggering a major impact on the market. Both Ripple executives seem to believe that the next major event will catch the industry off-guard and reshape it in unexpected ways.

Despite the caution from Capo, Lana Queen a crypto analyst remains optimistic, suggesting that these bearish sentiments might signal a bullish setup for new all-time highs (ATHs). She hints that with both Capo and Cramer bearish, market sentiment couldn’t be better for a rally.

Strategies for Investors

In response to this impending volatility, CryptoCapo TG advises investors to prepare mentally, diversify their portfolios, and consider a HODL strategy for long-term prospects. Staying informed about macroeconomic conditions and global developments is crucial as these factors can heavily influence market sentiment. Ultimately, while the potential for a sharp decline in the crypto market is real, it also presents an opportunity for investors to strengthen their strategies and gear up for a significant altseason ahead.

Looking at the current scenario and presidential candidates’ growing interest in crypto assets, there are changes that this year’s Black Swan event count turned positive for altcoins, as BTC dominance is still at 60%, which is favorable for altcoins.