finbold.com
Since Bitcoin (BTC) reached new all-time highs earlier this year, traders have wondered how far BTC can go. In this context, a Bitcoin trader revealed his exit strategy for the leading cryptocurrency, which involves selling to retail investors.
The trader’s account goes by the alias Wolf (@IamCryptoWolf) on X and has recently shown skepticism over Bitcoin price predictions. In particular, Wolf has criticized PlanB‘s $500,000 per BTC forecast, which has been massively reproduced by influencers.
According to the trader, retail investors will “FOMO” into Bitcoin as the price surpasses $130,000, following higher expectations ($500,000). Notably, this is when Wolf says he will start selling, using retail traders as exit liquidity to book profits.
He deemed the $500,000 price target based on a “broken model,” referring to the “Stock to Flow model.” Interestingly, this model has failed multiple times in Bitcoin history, misleading traders to unreachable targets every cycle. For example, PlanB had predicted BTC to reach $200,000 and then $100,000 in 2021 following his model, which never happened.
Bitcoin traders building their exit strategies must consider the possibility that their bullish expectations could be part of somebody else’s exit strategy and act accordingly with proper risk management and caution.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.