A warning has been raised again that Bitcoin (BTC) prices could sharply decline in the short term. Cryptocurrency analyst Edo Farina recently stated on his social media that the current Bitcoin uptrend is in an *overheated* state, predicting a potential crash of up to 80% in the near future. Although Bitcoin prices have risen 3.3% in the past month, reaching around $108,161, there are many underlying concerns.
Farina observed that the political optimism following Trump's election shows a disconnect from actual economic fundamentals. While U.S. inflation has stabilized at 2.4%, the 2025 GDP growth rate has been adjusted downward to 1.8%, and unemployment rose to 4.1% as of June. He explained that in such an economic environment, Bitcoin's 29.9% rise in the second quarter and recent 1% additional increase are difficult to sustain.
He emphasized that while previous Bitcoin bull markets saw gains of 304.1% in 2020 and 59.6% in 2021, the current timing is too late to expect significant profits. He warned that "the current price level is not a *safe entry point* for long-term investors".
Of particular note is the movement of whales. Whales holding Bitcoin mined during the Satoshi era have been repeatedly taking selling positions around $110,000. After Bitcoin broke $111,662 on May 22nd, it dropped 4% within a day, with similar sharp declines occurring on June 10th and July 3rd. This suggests whales are selling at price peaks to slow down the ascent.
Declining trading volume also raises concerns. Farina pointed out that individual investor inflow is currently limited, with prices supported by purchases from a few large investors. This structure is dangerous as it could lead to uncontrollable price drops due to liquidity shortages if massive selling occurs.
He also mentioned the possibility of a 'black swan' event, suggesting that unexpected external shocks could cause rapid and widespread price declines, potentially causing investors to incur losses without time to respond. Farina concluded that the current uptrend is based on "unfounded optimism" and a "*inflated peak*", urging market participants to remain vigilant.
Whether Bitcoin will break through the $110,000 resistance in the short term or retreat will be a key point of observation. The determination of whether this is the mid-stage of an upward rally or near a major correction will be a crucial variable in assessing the market's strength.
Get news in real-time... Go to Token Post Telegram
<Copyright ⓒ TokenPost, Unauthorized Reproduction and Redistribution Prohibited>
