QwQiao, co-founder of Alliance DAO, has issued a warning about the potential for a severe crypto bear market driven by retail investors with limited experience. This influx, fueled by cryptocurrency ETFs, could trigger significant price corrections and instability in markets like Bitcoin and Ethereum. QwQiao believes a 50% market drawdown is necessary to create healthier cycles. He emphasized the risks associated with inexperienced retail investors entering the market through spot and ETF products, suggesting that such movements often result in negative consequences for both individual investors and the broader crypto industry. Concerns are being raised over the potential for investor panic and volatility as a result of this influx. QwQiao’s warning coincides with growing unease about the stability of the current market sentiment. The impact of these shifts is prompting regulatory action, as key players in the crypto world remain cautious amidst a fragile market environment.