As the crypto market prepares for the next potential bear cycle, analysts warn that ETH and BTC could drop up to 50%, leaving many traders scrambling to find altcoins with structured upside.

The volatility of these flagship assets has prompted investors to question crypto is a good investment during downturns, and they are now turning their attention to projects offering tangible utility and predictable returns.

Mutuum Finance (MUTM) emerges as a standout alternative, providing real borrowing and lending mechanisms, stable liquidity, and a protocol design built to thrive even in a crypto crash scenario.

Crypto experts say that Ethereum (ETH) and Bitcoin (BTC) could lose 50% or more of their value in the next bear market, which is projected to happen in 2026.

BTC is worth about $113,000 and ETH is worth about $4,580 before the recent crash. However, historical patterns show that prices can drop by 70–80% from cycle peaks.

For example, BTC might drop from a forecasted $140,000–$200,000 high in late 2025 to $35,000–$60,000. ETH has done better than BTC in the past during late cycles, but it could drop from $7,000–$10,000 to $1,500–$2,300. 

Some of the reasons are profit-taking after the halving, regulatory monitoring, and changes in the economy as a whole, like U.S. tariffs that put off rate reduction.

Technicals reveal that BTC has a death cross (the 50-day moving average is below the 200-day moving average) and an RSI of 52.

ETH, on the other hand, is holding above $4,500 support. There is a 50% chance of a moderate bear, but the market is still very volatile.

Analysts say to diversify because preceding bad markets lasted 1 to 2 years before new rallies.

Mutuum Finance (MUTM) will allow participants to engage in P2C lending with confidence and efficiency.

For example, a user planning to deposit $20,000 in SOL will receive an equivalent amount of mtSOL tokens at a 1:1 ratio.

With an anticipated APY of around 14%, the depositor will earn $2,800 in passive income over a year, reinforcing the platform’s utility beyond speculative trading.

On the borrowing side, a participant will be able to post $1,500 worth of ETH as collateral and borrow up to 70% in stablecoins.

This strategy will allow the user to retain ETH upside while accessing liquidity, demonstrating the structured financial advantage MUTM provides compared to holding volatile assets during a market downturn.

For riskier or meme-inspired coins, Mutuum Finance (MUTM) will implement a P2P lending option.

Traders holding coins like PEPE or DOGE will be able to negotiate loan terms directly with lenders, accepting higher interest rates for higher risk.

By isolating these transactions from the core P2C pools, the protocol will maintain liquidity stability while offering attractive yields to risk-tolerant participants.

The platform’s collateral and liquidation mechanisms will also enhance investor confidence.

Borrowers will be required to overcollateralize their positions, and if ETH collateral falls below 80%, automated liquidations will be triggered.

Liquidators will purchase debt at a discount, and the Stability Factor will ensure protocol solvency even under extreme market conditions.

LTV ratios will be carefully calibrated—lower-volatility assets like ETH will allow up to 75% LTV with an 80% liquidation threshold, while more volatile tokens will be capped at 40–45% LTV with around 65% liquidation.

Reserve factors, ranging from 10% to 47% based on risk, will further buffer the system, providing a dependable on-chain safety net.

The current crypto charts indicate increasing interest in projects that combine real utility with investor protection.

Mutuum Finance (MUTM) will attract attention for its ability to manage systemic risk while still providing competitive yields, offering a compelling counterpoint to the declining returns of traditional assets.

Mutuum Finance (MUTM) is currently in Phase 6 of its presale at a price of $0.035 per token, with approximately $16.2 million raised and 47% of the 170 million token allocation already sold.

The project has already gained over 16,550 holders and maintains an active community with 12K+ Twitter followers.

The CertiK audit results, including a Token Scan score of 90 and a Skynet score of 79, will give participants additional confidence in security.

Traders will be motivated to participate as Phase 7 is expected to increase the token price by 15% to $0.040, creating strong FOMO for investors seeking early entry.

Phase 1 investors who acquired MUTM at $0.01 will see a 3.5x value gain, while a Phase 6 investment of $5,000 will secure around 143,000 tokens, projected to reach an unrealized $8,600 at listing at $0.06.

Long-term projections target $0.50 per token once the platform gains adoption, beta launches, and begins Layer-2 integration, offering faster transactions and lower costs compared to Layer-1 systems.

The upcoming stablecoin launch and planned listings on top exchanges like Binance, Coinbase, KuCoin, MEXC, and Kraken will increase visibility and allow users to experience the platform’s real utility, driving demand and price appreciation.

Additionally, a $100,000 giveaway for ten winners to receive $10,000 each in MUTM tokens will further energize the community.

The platform’s buy-and-distribute mechanism will continuously repurchase MUTM tokens from the open market using revenue from lending and borrowing activities.

These tokens will be distributed to mtToken stakers, ensuring sustained buy pressure.

The $50,000 CertiK Bug Bounty Program, covering four severity tiers from Critical ($2,000) to Low ($200), will maintain security while incentivizing the community to participate actively in safeguarding the protocol.

With a structured P2C/P2P model, secure collateral mechanics, and growing presale momentum, Mutuum Finance (MUTM) stands out as the only altcoin positioned to thrive when ETH and BTC decline.

As users interact with the beta platform, Layer-2 integration reduces transaction costs, and stablecoin demand rises, the token’s value will be increasingly supported.

Traders seeking stability, yield, and utility will find MUTM a compelling alternative in a market facing a potential crypto crash, setting the stage for significant upside in the months ahead.

For more information about Mutuum Finance (MUTM) visit the links below:

Website: https://www.mutuum.com

Linktree: https://linktr.ee/mutuumfinance

The post ETH and BTC could drop 50% next bear run, but traders see MUTM as the only upside play appeared first on Invezz

Bitcoin price in Telegram @btc_price_every_hour

313 +