Controversial influencer Andrew Tate has warned that Bitcoin may fall sharply to $26,000. In a video posted on X, he blamed the potential crash on traders using too much leverage and being overconfident.
Tate noted that Bitcoin recently dropped about 4%, bringing the price to around $62,500. He explained that traders are borrowing too much money to bet on the price rising. This can create a dangerous cycle of losses and liquidations.
How the Drop Could Happen
- Tate says many traders are too optimistic and think prices can only go up.
- When the market turns, leveraged traders face liquidations. Their positions are closed automatically, pushing the price down further.
- He believes this process will continue until “all optimism is gone.” Then, according to him, Bitcoin could recover later.
Tate’s video on X clearly stated: “Bitcoin is going to $26,000.”
Market Data Supports Concerns
Recent data shows that the crypto market is unstable:
- Over 1.6 million traders have been liquidated recently.
- Around $500 million in long positions have been lost.
- Major cryptocurrencies also fell: Ethereum dropped about 7%, Solana and XRP lost over 7%, and the overall market lost roughly $150 billion in hours.
These numbers show how risky leverage can be in volatile markets.
Reactions from the Public
People on social media had mixed reactions:
- Some praised Tate for warning about risk.
- Others criticized him, saying institutional investors are still buying. This month alone, about $2 billion went into Bitcoin ETFs.
- Some experts call his prediction extreme and argue that Bitcoin has recovered from bigger drops before.
Why Leverage Is Risky
Leverage allows traders to borrow money to increase profits. But it also magnifies losses. When the market moves against a leveraged trade, positions are automatically closed. This can accelerate price drops.
Tate’s warning is about this danger. He believes the high use of leverage makes Bitcoin vulnerable to a steep fall.
While Tate predicts a sharp drop to $26,000, experts remain divided. Some see it as a real warning about risky trading. Others see it as an exaggeration.
The crypto market is unpredictable. Traders are advised to be cautious, manage risks carefully, and avoid over-leveraging their positions.
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