10X Research anticipates significant correction for crypto and stocks
According to Markus Thielen, head of research at 10x Research, risk assets like crypto and stocks could see a “significant price correction” in the coming weeks.
Sharing his insights in an April 16 investor note, Thielen wrote that the cryptocurrency market is moving towards a “crucial tipping point,” which could lead to a notable correction in prices. The analyst revealed that his firm has sold all tech stocks in anticipation of this bearish event.
“We sold everything last night,” wrote Thielen.
The founder cited decreasing rate cuts, rising bond yields, and persistent inflation as the deterrents behind his bearish outlook.
The analysis follows Bitcoin’s 11% drop over the past week. The flagship cryptocurrency is down 6.7% in just the past 24 hours. At the time of publication, it was trading at $61,988.93. Thielen attributed Bitcoin’s drop to waning expectations of a cut in U.S. interest rates.
“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,” he added.
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