Top Crypto Traders Warn of Downside Risks for BTC and ETH
Crypto traders are now warning of potential downside risks for bitcoin and ether after recent record highs. Key points include:
- Bitcoin is trading at $115,000, down nearly 3% overnight; ether is at $4,317, down 5% in the last 24 hours.
- Concerns arise over the Federal Reserve's upcoming rate cut, with current odds of a cut at 83%, down from nearly 100% last week.
- Andrew Kang predicts $5 billion in liquidations for ether, potentially driving its price down to between $3,200 and $3,600.
- A record 885,000 ETH ($3.8 billion) is awaiting withdrawal from Ethereum’s staking mechanism, indicating a significant exit queue.
- Market movements reflect profit-taking and the unwinding of leveraged staking strategies, with large withdrawals from platforms like Lido adding to market uncertainty.
- Pseudonymous trader Flood suggested a possible decline of ether back to $2,000, reflecting a change in market sentiment.
Overall, the shift in sentiment highlights the volatility in crypto markets and presents potential trading opportunities amidst uncertainty.