Markus Thielen, the founder of 10x Research, believes that the stock and cryptocurrency markets are on the verge of a significant price correction. Thielen recently made the decision to sell all of his assets, citing persistent inflation, decreasing rate cuts, and a rising bond yield as the main factors influencing his bearish outlook.
The decline in Bitcoin’s price by over 9.3% during the week has raised concerns. Currently, market participants are expecting interest rates to remain unchanged, with 99% of traders predicting that the Federal Reserve will maintain the current interest rates of 5.25%–5.50%. This is an increase from 93.6% a month ago, according to the CME Group’s FedWatch Tool.
Thielen also revealed that his company sold all of its tech stocks at the beginning of Monday’s trading session. The decision was influenced by factors such as the upcoming Bitcoin halving and the overbought nature of Bitcoin, as indicated by the relative strength index (RSI). Although the RSI suggests that Bitcoin may be overheated, it has cooled significantly from its high of 88 in March.
Investors have shifted their focus to the Bitcoin halving, causing long-term holders to sell their assets and move them off exchanges. However, if short-term holders continue to absorb the supply, there is a possibility of a price recovery for Bitcoin.
Overall, Thielen’s bearish outlook and decision to sell all assets indicate that the stock and cryptocurrency markets may be heading towards a significant price correction.