- The crypto market is bracing for a massive $2 billion token unlock of various altcoins in the next two months.
- Analytics platform 10x Research warns that this could trigger an impending bear market, limiting the duration of the current bull market.
- Altcoins such as Aptos, Starkware, Arbitrum, Immutable X, Avalanche, and Optimism are among those set to release significant amounts of tokens.
As the crypto market prepares for a massive $2 billion token unlock, 10x Research warns of a potential bear market. This development could limit the duration and breadth of the current bull market, affecting various altcoins.
Impending $2 Billion Token Unlock
The crypto market is set to witness a significant event in the next two months – a massive unlock of various altcoins worth $2 billion. Tokens from Aptos (APT), Starkware (STRK), and Arbitrum (ARB) are set to release $97 million, $79 million, and $94 million tokens, respectively. Immutable X is also set to release $53 million IMX tokens, while Avalanche and Optimism are preparing to unlock $330 million AVAX and $64 million OP, respectively.
Warning of an Impending Bear Market
10x Research, a prominent crypto analytics platform, has issued a warning about a potential bear market driven by these token unlocks. The platform suggests that the current bull market may be shorter than expected and may not result in a broad altcoin rally. The rapid succession of nearly $2 billion of token unlocks could lower the market for altcoins, according to 10x Research.
Constraints on Industry Growth
Despite remarkable developments and high trading volumes of more than $100 billion, analysts have spotted significant constraints on the industry’s growth potential. The prevailing bull run is expected to have a limited “breadth and duration,” potentially posing challenges for the market.
Additional Factors Influencing the Market
In a K33 Research article, analyst Vetle Lunde hinted at the distribution of $11 billion Bitcoin (BTC) to the Gemini Earn program and Mt.Gox creditors. He suggested that these events could also influence the market, stating, “The next months are rigged to see waves of good old crypto FUD.”
Conclusion
The upcoming months could be a tumultuous time for the crypto market, with a massive $2 billion token unlock on the horizon. While this event could potentially limit the duration of the current bull market, it also presents an opportunity for investors to navigate the market strategically. As always, staying informed and vigilant will be key to weathering these developments.
