Lekker Capital CIO Quinn Thompson Articulates a Strong Buy Signal for Cryptocurrencies Amidst Bearish Market Sentiment

Quinn Thompson, Chief Investment Officer (CIO) at Lekker Capital, articulated a strong buy signal for cryptocurrencies amidst a landscape fraught with bearish sentiment.

Amidst a prevailing crypto bear market sentiment, Quinn Thompson, Chief Investment Officer (CIO) at Lekker Capital, has identified a strong buy signal for cryptocurrencies.

In a statement shared via social media platform X on Friday, Thompson described the current market landscape as presenting “one of the most obvious and attractive crypto buying opportunities of recent memory.”Lekker Capital, known for its cryptocurrency trading strategies based on macroeconomic cues, offers an analysis that sharply contrasts the بازار mood. Thompson's commentary comes at a time when pessimism appears to be gripping the crypto community. He expressed concern over a trend where it's becoming "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, highlighting the cyclical nature of market sentiments.

The CIO pointed to the reactive nature of the market, especially surrounding major events like ETF launches. He recalled the aftermath of the US spot Bitcoin ETF launch, which saw Bitcoin's price drastically drop from $49,000 to $38,000 within 12 days, despite bullish anticipation. This event, he noted, serves as an example of the market's tendency to move against consensus expectations.

Highlighting recent market dynamics, Thompson noted the impact of the sell-off, which appeared to be discouraging crypto investors from their usual strategies, like buying the dip with leveraged positions. “It’s clear this most recent selloff finally had an impact on market participants as there was a lack of leveraged long dip buying,” he stated.

According to Thompson, this scenario typically leads to a market correction, which begins with a slow recovery, followed by stabilization and a rapid upward movement once a catalytic event occurs. He mentioned the BTC ETF leak in October as an example of a “buy the news” event that shifted market sentiment.

Moreover, Thompson discussed the forward-looking nature of financial markets, including the crypto market. He believes the market has already adjusted to past events like the Mt. Gox saga and Bitcoin sell-offs by 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 noted.

Looking ahead, he highlighted several macroeconomic and microeconomic developments that could 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, indicating that these factors could reduce selling pressure and bolster market sentiment.

Delving into market technicals, Thompson indicated that several key indicators are at cycle lows, which usually precede upward movements in the market. “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,” he noted. This combination of factors, according to Thompson, suggests a potential market bottom.

In a bold closing prediction, Thompson anticipates significant rallies for major cryptocurrencies in the coming months. “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.

At press time, BTC trades at $60,766.

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