Market Analyst Foresees Potential Risk Asset Correction

Market Outlook

The prominent analyst who accurately predicted Bitcoin's bottom in November 2022 and its subsequent pre-halving price surge has now adopted a bearish stance. Concerns are mounting over a potential major price correction for both tech stocks and cryptocurrencies, provoked mainly by unyielding inflation and heightened Treasury Yields, as noted by Markus Thielen of 10X Research.

Strategic Shifts

In light of the market's poor performance, particularly the struggling Nasdaq in response to soaring bond yields, Thielen revealed that 10X Research has offloaded their tech stock holdings. The firm retains merely a select few cryptocurrencies, indicating a cautious approach in the face of what they perceive as an overarching bearishness in risk assets.

Bitcoin and ETF Dynamics

The 2023/2024 Bitcoin rally, largely fueled by the expectation of interest rate cuts, faces a stark reality check with current market conditions. Investor interest in Bitcoin spot ETFs, initially endorsed by the SEC, is waning. With the upcoming Bitcoin halving event and its likely influence set to diminish, there's a palpable anticipation of a potential market correction ahead.