Market Analyst Warns of Potential Price Correction for Risk Assets Including Crypto and Stocks
Markus Thielen, head of research at 10x Research, has issued a warning to investors, predicting a significant price correction for risk assets like crypto and stocks in the coming weeks. In an investor note shared on April 16, Thielen highlighted the cryptocurrency market’s movement towards a “crucial tipping point” that could lead to a notable drop in prices. As a result, his firm has sold all tech stocks in anticipation of this bearish event.
Thielen pointed to decreasing rate cuts, rising bond yields, and persistent inflation as the factors behind his bearish outlook. The recent 11% drop in Bitcoin over the past week, with a 6.7% decrease in the last 24 hours, has further fueled concerns. Bitcoin is currently trading at $61,988.93, with Thielen attributing the drop to diminishing expectations of a cut in U.S. interest rates.
Market sentiment seems to align with Thielen’s warning, as CME’s FedWatch tool indicates that 97.5% of market participants expect interest rates to remain unchanged. Mary Daly, president of the San Francisco Federal Reserve Bank, has also stated that there is “no urgency” for the U.S. to cut rates.
Despite the bearish outlook, Thielen mentioned that his firm still holds some “high-conviction crypto coins.” However, the overall sentiment remains pessimistic. This warning comes after Thielen’s previous speculation about cryptocurrency miners offloading $5 billion worth of Bitcoin following the halving, leading to a potential “summer lull” in the crypto market.
Investors are advised to stay informed and cautious in the face of potential market corrections and volatility. Follow us on Google News for more updates on this developing story.
