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News | Bitcoin

10X Research Projects Bearish Outlook After Calling New All-Time Highs For Bitcoin Before Halving

Author

Rickie Sanchez

Tags

Tags Editor's Choice

Reading time

2 mins
Last update

Author

Rickie Sanchez

Tags

Editor's Choice

Category

News / Bitcoin

Reading time

2 mins
Last update

Author

Rickie Sanchez

Tags

Editor's Choice

Reading time

2 mins
Last update


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Key Takeaways

  • Markus Thielen, founder of 10X Research, previously known for accurately predicting Bitcoin’s market movements, has shifted to a bearish outlook on risk assets, including technology stocks and cryptocurrencies.
  • He cited concerns about rising Treasury yields and persistent inflation as primary triggers for the potential price correction in risk assets. 
  • The recent increase in Treasury yields has led to repricing risk assets, dampening the appeal of tech stocks and cryptocurrencies.

10X Research founder Markus Thielen, who accurately predicted Bitcoin’s surge to new all-time highs in February, has reversed his view of the leading digital asset. His latest observations suggest that high-risk assets such as cryptocurrencies and technology stocks could be approaching a significant price downturn.

Inflation Data

One of the main reasons for the further decline in their prices is attributed to the recent US inflation data diverging from the Federal Reserve’s 2% target.

March’s statistics indicate a 3.8% uptick in core inflation (excluding volatile food and energy prices) and a 3.5% increase in headline inflation (including food and energy costs) compared to the previous year.

This is likely to postpone the anticipated interest rate cuts in June. Additionally, the steady employment figures amidst the escalating prices of goods and services might strengthen the Federal Reserve’s stance of not rushing into rate cuts.

Treasury Yields

Thielen pointed out that US government bonds offer higher yields, which could attract risk-averse investors seeking a safe haven for their funds.

He also noted a stall in interest in US spot Bitcoin ETFs, with their net inflows dropping to zero over the past five days. Consequently, the expert disclosed they have divested some of their technology stocks but have maintained their positions in some crypto assets.

Final Thoughts

Bitcoin’s price has been trending downward since Saturday’s Iranian attack on Israel. As of Tuesday evening, it is at $63,900, reflecting a significant drop of over 4% in the last 24 hours, more than 10% in the past week, and around 8% in the previous month.

However, despite the recent slump, Bitcoin remains up roughly 108% compared to a year ago. In that timeframe, it reached a high of $73,750.07 compared to a low of $24,797.17.

Rickie Sanchez

About the Author

Rickie is a seasoned blockchain and cryptocurrency enthusiast with extensive experience dating back to late 2017. His crypto journey has taken him across the globe, where he has worked with clients from diverse backgrounds. Notable collaborations include ghostwriting for a media startup, contributing to a blockchain blog based in Zurich, managing a weekly newsletter for a client in Japan, and serving as a token review writer for a crypto blog headquartered in the Netherlands. He will not rest until every individual is empowered with the knowledge and insights needed to thrive in the crypto landscape.