Crypto Analyst Warns 80% Bitcoin Crash Imminent Amid Whale Sell-Offs

Crypto analyst EDO FARINA XRP has issued a stark warning about the potential for an 80% crash in Bitcoin's price. Despite Bitcoin's recent 3.3% increase over the past 30 days and its current trading price of $108,161, Farina believes that the rally is unsustainable and that a sharp correction is imminent.

Farina points to several warning signs that suggest Bitcoin's bullish trend may be unsustainable. These include whale sell-offs, low trading volume, and weak economic fundamentals. The analyst argues that Bitcoin's recent surge is not backed by strong fundamentals, and that the economic environment does not support such an aggressive rally. Inflation in the U.S. has eased to 2.4%, close to the Federal Reserve’s target, but GDP growth is slowing, projected to drop to 1.8% in 2025. The labor market is also cooling, with unemployment rising to 4.1% in June, and consumer spending is expected to weaken.

Farina also notes that the best time to buy Bitcoin was years ago, with BTC returning a staggering 304.1% in 2020, followed by a solid 59.6% in 2021. Although 2022 saw a major correction with a 64.3% drop, the market bounced back strongly, posting gains of 115.4% in 2023 and 121.1% in 2024. According to the analyst, today’s price level is no longer ideal for those seeking “safe” long-term gains.

Another red flag is the behavior of Bitcoin whales. Farina claims that large holders, especially those owning Satoshi-era coins, are moving their BTC to exchanges. Each time the price approaches the critical $110,000 level, it faces strong resistance. For instance, on May 22, BTC touched $111,662, but by the next day, the market dropped nearly 4%. On June 10, Bitcoin climbed to $110,266, only to fall by more than 8% over the next 12 days. A similar trend occurred on July 3, when BTC touched $110,681 and dropped by 1.44% the very next day. These repeated sell-offs around the $110K mark suggest that whales are actively cashing out, keeping Bitcoin from breaking out to a new high.

Farina believes that what’s even more dangerous than whale selling is the low trading volume in the current market. Compared to previous bull runs, fewer retail investors are buying. The analyst argues that today’s price action is driven by a few large players, not widespread demand. This poses a serious risk. If whales decide to dump their holdings all at once, there may not be enough buying support to hold the price up. This lack of liquidity could trigger a cascade of sell-offs and lead to a massive crash.

Farina believes the crash will be triggered by a major, unexpected event—what’s often called a “black swan” in financial markets. Once it happens, the crash will be swift and brutal, catching most investors off-guard. He concludes that Bitcoin’s current high is artificially inflated and not supported by real market activity. Without strong and broad demand, the price could collapse quickly when the pressure hits.

While Bitcoin’s price action appears bullish, the warning signs are hard to ignore. Whale movements, resistance at $110K, weak economic fundamentals, and low volume suggest that the rally might not be as healthy as it looks. Whether this ends in a soft pullback or a dramatic crash, investors may want to stay alert.