Bursting of a massive speculative bubble in January in Memecoins seemed good enough reason for the general sale of the crypto market for the past several weeks.
The falls jumped up in a big way this week, partly thanks to the growing risk-off mood in the former Perky stock market.
Down more than 2% approx. 45 minutes before the end of the trade Thursday, Nasdaq is now lower by approx. 7% over the last handful of sessions. Today’s loss is led by the chipmakers of Nvidia’s (NVDA) earnings report in the fourth quarter last night. NVDA is lower by 5%.
Sales in shares came when many of the leading names sold at high valuations according to what seemed to months worth of uncontrolled gains. Throw into the Mix President Trump’s continuous customs threats – the latest are punitive charges against Mexico, Canada and China to begin on Tuesday – and the stage was set for the current correction.
“Maximum caution is justified in risk assets,” said Quinn Thompson, founder of Hedge Fund Lekker Capital. “Inflation data comes too hot for fat to reduce the rates in the short term, long -term inflation expectations are unanchoring for the upside (Big Red Flag), and now US economic data looks as if ‘Trump Bump’ was a dead cat punch.”
At Crypto Specifically, there is no suction coating from Thompson: “Any possible good news article that can be imagined has come and gone without a lot of upward price price,” he said. “Investors have forgotten that the bear markets are possible and how they look.” He targets $ 70,000 to Bitcoin at the end of March.
