BCA Research Analyst: Currently, all typical top signals have appeared in the cryptocurrency market
According to Jinshi News, a team led by Juan Correa, Global Asset Allocation Strategist at BCA Research, stated that the cryptocurrency market has now shown all typical top signals, including two low-circulation meme coins personally launched by Trump. They believe that Trump's coin issuance behavior "indicates a desire for personal wealth growth rather than sharing profits with new buyers."
Although institutional investors do not hold meme coins and according to BCA's calculations, meme coins account for less than 2% of the entire cryptocurrency market, strategists say that the surge in meme coins is a precursor to a larger trend: The market consensus on cryptocurrencies has become very optimistic; Bitcoin ETFs have become the most successful ETF issuances in history; BlackRock CEO Larry Fink said large investors are discussing whether to allocate 5% of their portfolios to Bitcoin. Fink even predicted that bitcoin prices could rise to $700k.
The BCA team stated: "We worry this frenzied optimism is a signal indicating that the cryptocurrency market is nearing its peak." They pointed out that currently more than 90% of Bitcoin supply is profitable - historically this ratio usually signifies when Bitcoin price peaks. They also added that eight out of ten financial apps ranked in download volume are crypto trading apps. In addition, the BCA team mentioned macroeconomic concerns including deficit spending possibly being lower than expected. “If US economy turns colder than expected and government acts irresponsibly fiscally it will be unfavorable for bitcoin continuing its explosive rally.” they said if bitcoin price falls down to $75k they would “buy more aggressively”. They also noted if Trump pushes forward plans establishing strategic reserves for bitcoins it might pose risk against their view point “Bitcoin price has peaked”.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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