BLK - Crypto Analyst Warns Bitcoin's Impending Correction As Rally Falters: 'We Are Bearish Risk Assets' | Benzinga
Amid fluctuating market signals, a renowned analyst who previously anticipated Bitcoin’s (CRYTO: BTC) impressive rise is now forecasting a downturn across risk asset classes.
What Happened: Markus Thielen, the analyst celebrated for his precise prediction of Bitcoin’s ascent, has shifted to a bearish perspective on risk assets, encompassing both tech equities and cryptocurrencies, CoinDesk reported on Tuesday. Thielen, who helms 10X Research, has voiced his alarm over a probable substantial market correction, spurred by unyielding inflation and the bond market’s forecasts.
"We sold all our tech stocks last night (at the open) as the Nasdaq is trading very poorly and reacting to the higher bond yield. We only hold a few high-conviction crypto coins. Overall, we are bearish risk assets (stocks + crypto)." Thielen said.
“Most of this 2023/2024 bitcoin rally is driven by expectations that interest rates would be cut, and this narrative is being seriously challenged now.”
Market participants have recalibrated their expectations for Fed rate cuts, envisioning fewer than three for the current year, a decrease from the previously expected six, as indicated by data from CMEGroup. This adjustment, combined with persistent inflation and a robust labor market, has propelled the 10-year Treasury yield to its highest level since November 2023, thus diminishing the allure ...