- April 17, 2024
- Posted by: [email protected]
- Category:
Markus Thielen, the visionary behind 10x Research, known for his prescient forecasts in the cryptocurrency space, has recently pivoted towards a more cautious stance on the market. Despite his past successes in predicting Bitcoin’s monumental rallies, Thielen now harbors bearish sentiments toward risky assets, including technology stocks and cryptocurrencies. This shift in perspective comes as a noteworthy departure from his prior bullish outlook, underscoring the evolving dynamics within the digital asset landscape.
In a significant CoinDesk interview from February 2024, Thielen underlined the historical trend of Bitcoin surging by an average of 32% in the 60 days preceding halving events. This observation was bolstered by a surge in inflows into US-based exchange-traded funds (ETFs), suggesting a growing optimism among traditional investors. Additionally, Thielen’s insights were supported by significant Relative Strength Index (RSI) indicators, historically serving as precursors to accelerated uptrends in Bitcoin’s price trajectory.
The culmination of these factors led 10x Research to project Bitcoin’s price to reach an impressive $74,611 by April 11, 2024, an estimate that closely mirrored the cryptocurrency’s attainment of an all-time high of $73,000 on March 14th. This forecast not only underscored Thielen’s astute analysis but also solidified 10x Research’s reputation as a leading authority in the cryptocurrency forecasting realm.
Furthermore, Thielen’s track record extends beyond mere price predictions, as 10x Research accurately identified Bitcoin’s bottom in November 2022, demonstrating a consistent ability to navigate the volatile cryptocurrency market landscape. However, recent developments have prompted Thielen to adopt a more cautious approach, as indicated by the issuance of a newsletter expressing bearish sentiments toward risky assets.
Thielen’s decision to liquidate all tech stocks held by 10x Research underscores the gravity of his concerns, with only a select few high-conviction crypto assets remaining in the portfolio. The overarching sentiment driving this shift in strategy is rooted in apprehensions surrounding persistent inflationary pressures, exacerbated by escalating bond yields and dwindling expectations of Federal Reserve rate cuts.
Moreover, the dwindling appetite for risk assets is further compounded by dwindling inflows into spot exchange-traded funds (ETFs), following the initial excitement surrounding the SEC’s approval of spot Bitcoin ETFs in January. Despite initially attracting substantial capital inflows amounting to approximately $12 billion, these ETFs have since experienced a noticeable slowdown in momentum, coinciding with a stagnation in Bitcoin prices since early March.
Looking ahead, Thielen anticipates a corrective phase post-halving hype, wherein the reduction in the issuance of new bitcoins per block is expected to create artificial scarcity, potentially driving demand. However, this corrective phase aligns with broader market dynamics characterized by inflationary pressures and tightening monetary policies, signaling a cautious outlook for investors navigating the increasingly volatile cryptocurrency landscape.
