Yuga exec warns about ‘true bear market’ Ether price as whales scramble

Yuga Labs’ Vice President Warns of Potential ETH Price Drop to $200

Yuga Labs’ vice president of blockchain, known as “Quit,” has warned that Ether (ETH) could potentially drop as low as $200 in a prolonged bear market, a 90% decline from its current price.

In a post on a social media platform, Quit pushed back against analysts who suggested a potential bottom for ETH at $1,500. Instead, the executive argued that a true bear market could see ETH fall significantly lower, similar to previous market cycles.

“A true bear market target, if we’re just getting started, would be ~$200-$400. That’s an 80% drawdown from here, 90% total drawdown — in line with past bear markets.”

Quit emphasized that he is in a “comfortable” position if things go south and advised followers to consider selling their stash if they’re uncomfortable with the asset going down.

ETH Holders Discuss Potential Price Trajectory

Quit’s post drew mixed reactions from the crypto community. Some investors agreed that ETH could drop further, while others said such a scenario would require a major systemic collapse.

One social media user suggested setting a price target of $1,800, but another agreed with Quit’s prediction and said, “It could very well go lower” if Bitcoin (BTC) goes to $66,000.

Meanwhile, another user disagreed with the prediction, saying it would only be possible if there were a systemic collapse similar to 2018. The ETH investor noted that Ether has been adopted by institutions and has a maturing ecosystem, making a 90% decline less likely.

“Positioning for both scenarios is what every smart investor should do, but being too bearish at the wrong time can cost just as much as being overly bullish,” they wrote.

ETH Whales Scramble Against Liquidation Threat

Quit’s warning came as ETH whales scrambled to avoid liquidation as Ether prices collapsed. On March 11, CoinGecko data showed that ETH prices went to a low of $1,791, a 22% decline in the past seven days.

Because of the sharp price changes, ETH whales moved millions of dollars in ETH to protect their positions against potential liquidation.

Blockchain analytics firm Lookonchain flagged an ETH whale dumping $47.8 million and losing $32 million to avoid being liquidated. The whale still has over $64 million at the lending protocol Aave with a liquidation price of $1,316.

Another ETH investor who had already used over $5 million in assets to lower the liquidation price to $1,836 started to be liquidated. Lookonchain said the whale’s $121 million balance was being liquidated as the price dropped below $1,800.

A whale account suspected of being linked to the Ethereum Foundation used $56 million in ETH to avoid liquidation amid the price drop. The address deposited over 30,000 ETH to the Sky vault, bringing its liquidation price to $1.127.14. The account was later determined to be unrelated to the foundation.

Conclusion

In conclusion, Yuga Labs’ vice president’s warning of a potential ETH price drop to $200 has sent shockwaves through the crypto community. While some investors agree with the prediction, others believe it would require a major systemic collapse. As the market continues to fluctuate, ETH whales are scrambling to avoid liquidation, highlighting the need for investors to be vigilant and prepared for any eventuality.

FAQs

What is a bear market?

A bear market is a prolonged period of decline in the stock market, often characterized by a 20% decline in the value of a particular asset.

What is liquidation?

Liquidation is the process of selling an asset at a loss to avoid further losses or to meet margin calls.

What is a whale in the crypto market?

A whale is a large investor or entity that holds a significant amount of a particular cryptocurrency, often with the goal of influencing market prices.

What is Aave?

Aave is a decentralized lending protocol that allows users to lend and borrow cryptocurrencies.