Yuga Labs VP Warns ETH Could Plummet 80% to 90%

Yuga Labs’ vice president of blockchain, known as “Quit,” issued a stark warning about the potential for a prolonged bear market in Ether (ETH), suggesting that the cryptocurrency could plummet to as low as $200. This prediction, made in a March 11 post, contrasts sharply with analysts who have suggested $1,500 as a possible bottom for ETH. Quit argued that a true bear market could see ETH fall significantly lower, aligning with historical market cycles.

Quit’s analysis indicates that a true bear market could result in an 80% to 90% drawdown from current prices, which would place ETH in the range of $200 to $400. This perspective is based on past bear markets, where similar declines have been observed. The executive also advised followers to consider selling their holdings if they are uncomfortable with the potential for significant price drops.

Quit’s post sparked a range of reactions within the crypto community. Some investors agreed with the possibility of further declines, while others believed that such a scenario would require a major systemic collapse. One investor set $1,800 as the bottom but later contemplated whether the price could drop to $1,200, agreeing with Quit’s prediction that ETH could go even lower if Bitcoin (BTC) were to reach $66,000.

Conversely, another investor disagreed, stating that a systemic collapse similar to 2018 would be necessary for such a drop. This investor highlighted that, unlike previous cycles, Ether has been adopted by institutions and has a maturing ecosystem. They advised that smart investors should position themselves for both bullish and bearish scenarios, as being too bearish at the wrong time can be as costly as being overly bullish.

Quit’s warning came as ETH whales scrambled to avoid liquidation amid a sharp decline in Ether prices. On March 11, data showed that ETH prices had dropped to a low of $1,791, marking a 22% decline over the past seven days. This volatility prompted ETH whales to move millions of dollars in ETH to protect their positions against potential liquidation.

Blockchain analytics firms flagged several instances of whales taking drastic measures to avoid liquidation. One whale dumped $47.8 million in ETH, losing $32