Renowned cryptocurrency trader, who goes by the pseudonym Capo, has emerged as a prominent critic of the cryptocurrency market, offering a bleak outlook for Bitcoin, Ethereum, and other altcoins.

Capo recently took to Twitter, addressing his extensive following of over 750,000 users with a lengthy message outlining his predictions of substantial contractions in the prices of Bitcoin and Ethereum.

Despite the market’s recent recovery, Capo remained steadfast in his analysis, asserting that prices were still grappling with a significant resistance level.

Expressing his skepticism, Capo reiterated his belief that recent fluctuations in cryptocurrency prices appeared to be subject to manipulation.

He warned of an imminent capitulation event, projecting Bitcoin to plummet to $12,000 and Ethereum to range between $500 and $700. In addition, he predicted a severe decline averaging 60-80% across various altcoins.

Notably, Capo refrained from specifying a timeline for these anticipated events, leaving the community to ponder the potential implications of his foreboding forecast.

Capo’s somber outlook extends beyond Bitcoin and Ethereum, with his latest predictions highlighting the vulnerability of popular altcoins and their potential to reach new lows.

Capo disclosed his strategic approach, revealing his accumulation of short positions in select cryptocurrencies such as Binance Coin ($BNB), Solana ($SOL), and Polygon ($MATIC).

These particular digital assets have recently faced regulatory scrutiny, with the U.S. Securities and Exchange Commission (SEC) filing lawsuits against Binance and Coinbase, alleging that these altcoins may qualify as securities.

Highlighting the downward trajectory of many altcoins, Capo noted that some have already dipped below their 2022 lows, while others are on the brink of retracing the gains they achieved during this year’s bear market rally.

To capitalize on these anticipated declines, Capo has been actively building short positions against these altcoins, employing conservative leverage strategies.

Key resistances are identified by Capo as critical points at which he is adding size to his short positions.

Among the altcoins he believes could experience further drops are Binance Coin ($BNB), TRON ($TRX), Solana ($SOL), Aave ($AAVE), and Polygon ($MATIC).

Capo claimed that all of these positions are currently profitable, except for the TRON trade.

In a related development, the recent filing by BlackRock for a spot Bitcoin ETF has triggered a race among major financial institutions to secure a listing for a similar product in the United States.

This move has raised expectations of a potential $15 trillion cryptocurrency market surge, as more institutions seek exposure to Bitcoin.

As the cryptocurrency market continues to navigate uncertain terrain, Capo’s warnings echo the growing concerns surrounding altcoins and the potential for a significant market correction.