Ethereum News Update: Overleveraging and Retail Hype May Lead to a 50% Cryptocurrency Plunge
- Alliance DAO co-founder QwQiao warns next crypto bear market could see 50% drawdown due to excessive leverage and inexperienced investors flooding spot assets and ETFs. - DATs (decentralized autonomous tokens) face sharp reversal risks as inflows plummet 82% to $1.93B in October, while BlackRock's IBIT ETF sheds $2.47B amid record outflows. - Market fractures as critics argue "dumb money" rhetoric oversimplifies maturing crypto adoption, while Ethereum's price struggles and Japan's $135B stimulus fail to
Alliance DAO co-founder QwQiao has delivered a strong caution that the upcoming crypto bear market could be much harsher than many expect, fueled by rampant leverage and a surge of novice participants. In a post dated November 21,
This warning gained momentum as Placeholder partner Chris Burniske supported QwQiao's perspective,
These warnings have ignited discussion within the crypto sector. While some investors agree that inexperienced participants often panic and sell during turbulent times,
Larger macroeconomic trends are also at play.
QwQiao’s alerts are part of a broader trend of caution among experienced investors. He has previously
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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