Markus Thielen, the CEO of 10x Research, in his latest analysis, projects potential risks for Bitcoin‘s price, which could potentially drive it down to $63,000. Thielen, known for previously predicting Bitcoin’s retraction to $38,000 after an ETF approval, suggests that the era of meme coins has concluded and advises investors to secure their profits soon. His concerns about the cryptocurrency market’s future stem from the recent weak Bitcoin market structure and low transaction volumes despite reaching an all-time high.
Market Volatility and Economic Data Suggest Correction
The analysis points to recent U.S. inflation and employment data, along with market volatility, as indicators of an impending correction. Thielen notes that shares of MicroStrategy are trading at high premiums based on their Bitcoin assets, hinting at overvaluation. Additionally, the Federal Reserve’s ambiguous approach towards interest rate reductions is weighing heavily on market sentiment, affecting investor outlook.
Ethereum and Layer-2 Projects Show Weak Performance
Ethereum is also experiencing sluggish performance, even after its Dench upgrade. With diminishing expectations for a spot Ethereum ETF and technical patterns indicating a 30% chance of consolidation or further drops in price, the outlook for Ethereum is not optimistic. At the time of reporting, Ethereum’s price has decreased slightly, with a notable decline in trading volume.
Thielen’s forecast includes a period of slowing sales for Grayscale Bitcoin Trust (GBTC) and speculates that Bitcoin’s price might dip before a larger rally if the process for a spot Bitcoin ETF slows down.
The report also observes the peak and subsequent decline in trading volumes of meme coins, particularly in South Korea. This trend, coupled with Ethereum’s uncertain trajectory, suggests an increased risk of a market downturn, including among meme coins, potentially heralding a more extensive correction phase in the cryptocurrency market.