Quinn Thompson, Chief Investment Officer (CIO) at Lekker Capital, expressed a strong buy signal for the cryptocurrency amid a world full of bearish sentiment. In a statement released via social media X, Thompson described the current market conditions as “one of the most obvious and attractive opportunities to buy crypto in recent memory.”
Lekker Capital, which has carved out a niche in the trading of cryptocurrencies based on macroeconomic cues, offers an analysis that strongly opposes the current market situation. Thompson’s comments come at a time when the broader crypto community seems full of hope. He expressed concern over the current trend where it has become fashionable among crypto investors to take a bearish stance. “In all my 5 years in crypto, I have never seen it so ‘cool’ among native crypto investors as it is now supposed to be bearish,” Thompson commented, reflecting on the cyclical nature of market sentiment.
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Thompson pointed to the nature of market activity, particularly around major events such as ETF launches. He also looked at the result of the launch of the US spot Bitcoin ETF, which, contrary to expectations, saw the price of Bitcoin drop from $49,000 to $38,000, marking a 22% drop in just 12 days. He said this event should serve as a warning about the tendency of the market to not conform to consensus expectations.
Addressing recent market volatility, Thompson highlighted the significant impact of the sell-off dampening the spirits of market participants, discouraging traditional dip-buying strategies with available positions. “It is clear that this recent selloff has finally caught the market participants off guard given the lack of long-term dip buying,” he noted.
This situation, according to him, sets the stage for a market correction that usually follows the first pattern of slow recovery, stabilization, and then a rapid upward movement in the event of a strong event. He recalled the BTC ETF leak in October as a “buy the news” event that reset market sentiment.
In addition, Thompson discussed the future of financial markets, stressing that the crypto market is no different. He believes that the market is already accustomed to past events such as Mt. Gox saga and Bitcoin sales from the US government and the German government. “The important thing to remember here is that the markets are looking forward. To quote Mt. Gox or the feeding of the US government and the German government is old news – the market has priced this. “Fear and presumptions lead to irrational misunderstandings,” commented Lekker Capital CIO.
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Looking ahead, he emphasized macro and microeconomic developments that are poised to impact the market. “On the big side, this includes the November election and more Fed money. On the front, it’s ETH ETF, Circle IPO, and BTC miner’s profit improved thanks to AI,” he explained. These factors are expected to reduce selling pressure (eg Bitcoin miners) and strengthen market sentiment.
Delving deeper into the technicalities of the market, Thompson pointed out that several key indicators are at lower levels, which historically precede upward movements. He noted, “BTC and ETH CME fundamentals, alt open interest as a percentage of total, and relative capitalization all remain at low levels while stablecoin supply is growing again.” This combination of factors, according to Thompson, indicates a potential market structure.
In a bold closing prediction, Thompson revealed significant rallies for major cryptocurrencies in the near future. “Personally, I think ETH will reach $7,000 and BTC will make its first attempt at $100,000 by the election in November,” he said confidently.
At press time, BTC traded at $60,766.
Featured image from Shutterstock, chart from TradingView.com
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