10x Research, led by Markus Thielen, released a statement offering insights into Bitcoin and the broader cryptocurrency market ahead of the US FOMC meeting. Thielen, known for his accurate Bitcoin price predictions and previous involvement with Matrixport, advised investors to be cautious and consider portfolio adjustments in anticipation of market movements.
Strategic Portfolio Diversification
Thielen recommended a diversified portfolio with a cap of 20% for any single cryptocurrency. His suggested portfolio included Bitcoin, Ethereum, BNB, Solana, XRP, Cardano, Avalanche, Tron, Chainlink, and Polkadot. This strategy had mirrored Bitcoin’s 150% return over the past year, indicating its effectiveness.
Bitcoin’s market dominance stood at 52.75%, with a 41% share in trading volumes, overshadowing Ethereum’s 18%. Despite the dominance, Bitcoin and Ethereum’s price increases were modest at 1% and 2%, respectively. Meanwhile, other cryptocurrencies like TIA and BLUR showed significant gains, leading the performance chart for the year.
The report also highlighted the performance of ETFs, with BlackRock and Fidelity seeing substantial inflows. However, their combined daily trading volume of $651 million paled in comparison to Bitcoin’s $23 billion, which puzzled traders. Recent price corrections were attributed to outflows from Grayscale’s GBTC.
Thielen predicted the onset of Bitcoin’s fifth wave, suggesting a potential rally to $50,000 by quarter’s end. He cautioned that Bitcoin might consolidate before breaking the resistance between $43,000 and $44,000. In contrast, Michael van de Poppe anticipated a price range of $38,000 to $48,000 before the Bitcoin halving, with a possible short-term correction.