CryptoForDay

Your daily dose of crypto news

Stocks and Crypto on Brink of ‘Significant’ Correction: 10x Research

2 min read
d3a1bfb8650bbd59f1a5a55de4c9a3b2 CryptoForDay

Stocks and Crypto on Brink of 'Significant' Correction: 10x Research

According to Markus Thielen, the founder of 10x Research, the stock and cryptocurrency markets are reaching a critical tipping point and could experience a significant price correction. Thielen cites persistent inflation, decreasing rate cuts, and rising bond yields as reasons for his bearish outlook. He sold all of his investments due to these factors. The unexpected and ongoing inflation is the primary trigger for this potential market correction. With the bond market projecting fewer rate cuts and 10-year Treasury Yields surpassing 4.50%, the risk assets may have reached a crucial tipping point.

Bitcoin’s price has already declined by over 9.3% in the past week, trading above $63,400 as of 9:15 am UTC. Thielen believes that the falling expectations for an interest rate cut could be the reason behind the decline. Market participants now expect the Federal Reserve to maintain interest rates at the current 5.25% to 5.50%. Thielen’s research note also reveals that his company sold all of its tech stocks and holds only a few high-conviction crypto coins. They have a bearish outlook on risk assets.

One technical indicator suggests that Bitcoin’s price may be “overbought” and overheated. The relative strength index (RSI) for Bitcoin is currently at 67, signaling that the asset may be overvalued. The RSI has cooled significantly from its high of 88 in March. The RSI is a momentum indicator used to measure whether an asset is oversold or overbought based on recent price changes.

Investor attention has recently shifted to the upcoming Bitcoin halving, causing long-term holders to start selling and moving their assets off exchanges. As long as short-term holders absorb the supply, there is a possibility of Bitcoin price recovery. A research report from Bitfinex suggests that there has been a shift in the composition of the Bitcoin investor base, with new entrants absorbing the supply sold by long-term holders. This indicates potential room for further price growth if this trend continues.

Markus Thielen believes that the stock and cryptocurrency markets are approaching a crucial tipping point and could experience a significant price correction. Thielen sold all of his investments due to factors such as persistent inflation, decreasing rate cuts, and rising bond yields. Bitcoin’s price has already declined, possibly due to the falling expectations for an interest rate cut. The RSI suggests that Bitcoin may be overheated, although it has cooled from its high. The upcoming Bitcoin halving has caused long-term holders to sell, but as long as short-term holders absorb the supply, there is potential for price recovery.

12 thoughts on “Stocks and Crypto on Brink of ‘Significant’ Correction: 10x Research

  1. Thielen’s research note seems biased. I’m not convinced by his arguments.

  2. I’m impressed by Thielen’s decision to sell all of his investments. It takes guts to make such a bold move.

  3. The stock market has always had its ups and downs. No need to panic, people!

  4. Markus Thielen’s insights are invaluable for navigating the stock and cryptocurrency markets. I’m grateful for his research.

  5. The RSI is just one indicator. Let’s not jump to conclusions based on that alone. 📉

  6. The shift in the Bitcoin investor base hints at potential further price growth. It’s an exciting prospect for crypto enthusiasts.

  7. I highly doubt Thielen’s credibility. Just sounds like fearmongering to me.

  8. The plummeting Bitcoin price is something to keep an eye on. Could the falling expectations for an interest rate cut be the cause?

  9. I wish there was more balanced reporting instead of all this pessimism.

  10. The shift in the Bitcoin investor base is certainly interesting. Is this an opportunity for further price growth? 🔄📈

  11. Investing wisely requires staying informed about market trends. Thank you, Markus Thielen, for shedding light on potential market corrections. 💡📊

  12. The RSI indicator is an important tool to gauge market conditions. It’s always good to have these insights.

Leave a Reply

Copyright © All rights reserved.