Buy Crypto Now: Lekker Capital CIO Spotlights Prime Opportunity
June 27 2024 - 4:15AM
NEWSBTC
Quinn Thompson, Chief Investment Officer (CIO) at Lekker Capital,
articulated a strong buy signal for cryptocurrencies amidst a
landscape fraught with bearish sentiment. In a statement released
through the social media platform X, Thompson described the present
market conditions as “one of the most obvious and attractive crypto
buying opportunities of recent memory.” Lekker Capital, which has
carved a niche in trading cryptocurrencies based on macroeconomic
cues, provides an analysis that contrasts sharply with the
prevailing market mood. Thompson’s commentary comes at a time when
the broader crypto community appears enmeshed in pessimism. He
expressed concern over the current trend where it’s become
fashionable among crypto investors to adopt a bearish stance. “In
all of my 5 years in crypto, I have never seen it be so ‘cool’
amongst crypto native investors as it is right now to be bearish,”
Thompson noted, reflecting on the cyclical nature of market
sentiments. Related Reading: ‘Crypto Queen’ Wanted: FBI Puts $5
Million Price Tag On OneCoin Founder’s Arrest Thompson pointed to
the reactive nature of the market, particularly surrounding major
events like ETF launches. He revisited the aftermath of the US spot
Bitcoin ETF launch, which contrary to the bullish anticipation, saw
Bitcoin’s price plunge from $49,000 to $38,000, marking a steep 22%
decline in just 12 days. This event, he argued, should serve as a
cautionary tale about the market’s tendency to move against
consensus expectations. Addressing the most recent market dynamics,
Thompson highlighted the significant impact of the sell-off that
dampened the spirits of market participants, discouraging the usual
strategies of buying the dip with leveraged positions. “It’s clear
this most recent selloff has finally stung market participants
given the lack of leveraged long dip buying,” he observed. This
scenario, according to him, sets the stage for a market correction
that typically follows a pattern of initial slow recovery,
stabilization, and then a rapid upward movement once a catalytic
event occurs. He recalled the BTC ETF leak in October as a “buy the
news” event that realigned market sentiment. Furthermore, Thompson
discussed the forward-looking nature of financial markets,
emphasizing that the crypto market is no exception. He believes
that the market has already adjusted to past events such as the Mt.
Gox saga and Bitcoin sell-offs from the US and German governments.
“The key thing to remember here is markets are forward looking.
Citing the Mt. Gox or US and German government supply overhangs is
old news – the market has priced this in. Fear and capitulation
invokes an irrational near-sightedness,” the Lekker Capital CIO
remarked. Related Reading: Here’s Why The Bitcoin Bottom Is In, New
Highs Imminent: Crypto Expert Looking ahead, he underscored several
macro and microeconomic developments poised to influence the
market. “On the macro front, these include a November election and
additional Fed liquidity. On the micro front, they are the ETH ETF,
Circle IPO, and improved BTC miner profitability thanks to AI,” he
explained. These factors are expected to reduce selling pressure
(e.g. Bitcoin miners) and invigorate market sentiment. Delving
deeper into market technicals, Thompson pointed out that several
key indicators are at cycle lows, which historically precede upward
movements. He noted, “BTC and ETH CME basis, alt open interest as a
percentage of total, and macro relative value all sit at cycle lows
while stablecoin supply is finally growing again.” This combination
of factors, according to Thompson, signals a potential market
bottom forming. In a bold closing prediction, Thompson projected
significant rallies for major cryptocurrencies in the near future.
“Personally, I think ETH will reach $7,000 and BTC will make its
first attempt at $100,000 by the election in November,” he stated
confidently. At press time, BTC traded at $60,766. Featured image
from Shutterstock, chart from TradingView.com
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From May 2024 to Jun 2024
Bitcoin (COIN:BTCUSD)
Historical Stock Chart
From Jun 2023 to Jun 2024