Alliance DAO co-founder QwQiao has issued a stark warning: the next crypto bear market may be far more brutal than anticipated. In a recent tweet, he expressed concern over the rising influx of retail investors—many of whom lack a solid understanding of crypto—investing in spot assets and newly launched ETFs.
QwQiao believes this “dumb money” entering the market often fuels unsustainable growth and historically leads to sharp corrections. His forecast includes a possible 50% drop, driven by mass liquidations when inexperienced investors panic-sell.
According to QwQiao, this kind of reset is necessary. Only after such a steep correction can the market form a stronger base and resume a more stable and meaningful upward trajectory—a “supercycle,” as some call it.
Burniske: The DAT Token Slide Has Just Begun
Further supporting the bearish outlook is Placeholder partner Chris Burniske, who also took to Twitter to share his views. He warned that the sell-off in Decentralized Application Tokens (DATs) is just beginning.
Burniske compared the current situation to the token run-ups of previous cycles, saying that just as prices rose sharply, they are now poised to fall just as quickly—if not faster. His comment implies that many tokens remain overvalued and are ripe for correction.
Together, both perspectives suggest that the crypto market may face significant downside before the next real bull run can begin.
Alliance DAO co-founder QwQiao tweeted reiterating his view that the next bear market (timing unknown) will be worse than most people here expect. A large cohort of “dumb money” who know nothing about crypto is buying spot and ETFs, which never ends well. The market may need…
— Wu Blockchain (@WuBlockchain) November 21, 2025
What Investors Should Watch For
For casual or new investors, these warnings are worth considering. The presence of ETFs and easy access to crypto through centralized platforms may give a false sense of security, especially to those unfamiliar with the space’s volatility.
Long-term holders and seasoned crypto enthusiasts may see any upcoming downturn as a time to accumulate or consolidate positions—rather than panic. As always, market resets can create new opportunities, but only for those who are prepared.