Key Points
- Jacob King from WhaleWire warns about potential Bitcoin and crypto market downturn.
- Key factors include MicroStrategy’s reduced Bitcoin purchases, El Salvador’s policy shift, and BlackRock’s BTC sales.
Jacob King, a WhaleWire analyst, recently shared his concerns about the possible trajectory of Bitcoin and the wider cryptocurrency market.
Triggering Factors for a Bear Market
In a post, King outlined several developments that, in his view, could instigate a prolonged bear market.
He cited the declining Bitcoin purchases by MicroStrategy, a perceived shift in El Salvador’s Bitcoin-centric policies, and BlackRock’s significant offloading of its BTC holdings as potential red flags for investors.
King has frequently criticized MicroStrategy’s Bitcoin-centric business strategy in the past, dubbing it a “huge scam.” He argues that such a model is unsustainable and doomed to fail.
Tether’s Pause in Minting and Market Risks
King also brought attention to the fact that Tether (USDT), a leading issuer of stablecoins, has halted new minting activity for over 20 days. This pause coincides with a period of stagnation in Bitcoin’s price.
He warned of a possible downturn in the crypto market, which could occur simultaneously with a broader stock market crash. King attributed the current market optimism to “greed” and urged investors to reevaluate their risks before maintaining their positions.
At the time of King’s critique, Bitcoin was trading at $98,387.00.