DeFiance Capital Founder: Another 20% Bitcoin Drop Could Hit Retail Investors Harder Than 2022 Crash

Key Takeaways:Arthur, founder of DeFiance Capital, cautioned that a 20% further decline in Bitcoin could inflict heavier losses on retail investors than those seen in the 2022 bear market.He noted that this risk persists even without any major institutional collapses or protocol failures.The comments highlight growing concern over market leverage and retail exposure amid recent volatility.Arthur Sounds Alarm on Retail ExposureAccording to Odaily, Arthur, founder of DeFiance Capital, stated on the X platform that even if no large entities or DeFi protocols collapse due to mismanagement or bad bets, a further 20% drop in cryptocurrency prices could result in retail investors suffering deeper losses than during the 2022 downturn.Arthur’s remarks reflect increasing anxiety over over-leveraged positions and declining liquidity, as Bitcoin and major altcoins struggle to hold key technical levels amid macroeconomic uncertainty.Market ContextBitcoin recently slid below $104,000, extending its multi-day decline as risk sentiment weakened across global markets.The latest sell-off follows massive liquidations exceeding $1 billion, as traders unwound leveraged positions amid hawkish signals from the U.S. Federal Reserve and heavy outflows from Bitcoin ETFs.Ethereum (ETH) and other altcoins have also suffered double-digit declines, fueling fears of a broader capitulation phase if prices continue to trend lower.Arthur’s OutlookArthur emphasized that despite the absence of systemic failures so far, retail traders remain highly vulnerable, having re-entered the market aggressively during this year’s rally.He warned that another wave of forced liquidations could erase much of the year’s gains for smaller investors, echoing conditions from the 2022 bear market, when crypto market capitalization plunged by over $2 trillion.