According to CoinDesk , market analysis agency 10X Research has sold off all technology stocks and most cryptocurrencies on the 15th. It is quite bearish on the market outlook. What is his reason?
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Toggle10X Research: Clear stocks, crypto assets
Founder Markus Thielen pointed out that risk assets (stocks and cryptocurrencies) are on the verge of a sharp price correction, and the main factor is unexpected and persistent inflation.
And with the bond market predicting less than three interest rate cuts and the 10-year U.S. Treasury yield exceeding 4.50%, risky assets may have reached a critical inflection point.
He said:
We sold all tech stocks after the open on the evening of the 15th as the Nasdaq performed very poorly and reacted to rising bond yields. Currently we only hold a small number of bullish cryptocurrencies and remain bearish on risk assets (equities + cryptocurrencies) in general, hoping to re-enter at lower price levels in the future.
Reasons to be bearish on Q2 crypto markets
Regarding cryptocurrency (Bitcoin), Markus Thielen put forward several other bearish views:
Bitcoin spot ETF flows are sluggish, with most net inflows occurring in Q1.
MicroStrategy (MSTR) has retraced 30% and is still well above fair value (tweet below).
Six rate cuts were expected at the beginning of the year, and now there are only three left, and there may not be any rate cuts throughout the year.
Bitcoin's gains in 2023 and 2024 are all driven by expectations of interest rate cuts, and the upward momentum faces serious challenges.
Markus Thielen pointed out:
After a hype boom, ETF inflows tend to dry up unless prices continue to rise, but Bitcoin prices have stalled since early March, with losses ranging from 2% to 17% likely to keep potential investors on the sidelines.
We Sold Everything Last Night ->
👇1-11) Our growing concern is that risk assets (stocks and crypto) are teetering on the edge of a significant price correction (see yesterday's report). The primary trigger is the unexpected and persistent inflation. With the bond market now… pic .twitter.com/EvHyvw1du5
— 10x Research (@10x_Research) April 16, 2024
