With the geopolitical and macroeconomic headwinds, tension on the financial markets is increasing. Expectations for the Bitcoin (BTC) price are also being significantly adjusted. Markus Thielen, a well-known crypto analyst and founder of 10x Research, is currently a lot more pessimistic than before.
Well-known analyst is bearish
Thielen predicted the bottom of the Bitcoin price in November 2022 and he also predicted the recent pre-halving rise to new all-time highs. But at the moment he says he is putting on the brakes.
“Our growing concern is that risk assets (stocks and crypto) are about to make a significant price correction. The primary reason for this is the unexpected and persistent inflation. The bond market is now predicting fewer than three rate cuts and government bond yields are higher than 4.50 percent. We may have reached a crucial point for risk assets,”
Thielen said in a message to 10x Research clients on Tuesday. He says the institute has sold all its tech stocks. Only a number of specific crypto assets are retained.
What is the reason for the correction?
Thielen believes that the reason for the recent increases in the financial markets has been the anticipated declines in interest rates. At the beginning of the year, the Federal Reserve was still expected to implement six interest rate cuts. Due to persistent inflation, this expectation has now been adjusted to fewer than three interest rate decreases.
According to him, interest in Bitcoin ETFs is also waning. Due to the recent corrections in the Bitcoin price, investors are still waiting.
The crypto markets have already fallen sharply since last month’s peak. But according to Thielen, this is only the beginning. He does not say how long and how deep he thinks this correction in the financial markets will last.
He shares the opinion of other analysts. Some people think that the crypto correction will continue even further after the Bitcoin halving. Currently, the anticipation of the halving is still keeping the BTC price reasonably afloat. But once the halving is over, things could potentially look very grim for the markets. Time will tell if these forecasts are accurate.
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Source: https://newsbit.nl/crypto-analist-verwacht-diepere-correctie-op-de-financiele-markten/
