According to CoinDesk, market analysis firm 10X Research sold all of its technology stocks and most cryptocurrencies on the 15th, expressing a bearish outlook for the future. The reason for this is the unexpected persistence of inflation, which has led to a significant price correction in risk assets (stocks and cryptocurrencies). Additionally, with the expected decrease in interest rates in the bond market being less than three times, the 10-year US Treasury yield has exceeded 4.50%, indicating that risk assets may have reached a critical turning point.
Markus Thielen, the founder of 10X Research, stated, “We sold all of our technology stocks after the poor performance of the Nasdaq index and the rise in bond yields on the 15th. Currently, we only hold a small amount of promising cryptocurrencies, but overall, we maintain a bearish outlook on risk assets (stocks + cryptocurrencies) and hope to re-enter the market at lower price levels.”
Regarding the bearish outlook for the Q2 cryptocurrency market, Markus Thielen also provided several points:
1. The flow of Bitcoin spot ETFs has been sluggish, with most net inflows occurring in Q1.
2. MicroStrategy (MSTR) has retraced 30%, but it is still far above its fair value.
3. The expected rate cuts at the beginning of the year were originally six times, but now there are only three times, and there may not be any rate cuts for the entire year.
4. The price increases of Bitcoin in 2023 and 2024 were driven by rate cut expectations, and the upward momentum is facing serious challenges.
Markus Thielen added, “After the speculative frenzy, unless prices continue to rise, ETF inflows tend to stagnate. However, the price of Bitcoin has been stagnant since early March, and potential investors may adopt a wait-and-see attitude.”
10x research
Bitcoin