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

statement
released
through
the
social
media
platform
X,
Thompson
described
the
present
market
conditions
as
“one
of
the
most
obvious
and
attractive
crypto
buying
opportunities
of
recent
memory.”

 

Lekker
Capital,
which
has
carved
a
niche
in
trading
cryptocurrencies
based
on
macroeconomic
cues,
provides
an
analysis
that
contrasts
sharply
with
the
prevailing
market
mood.
Thompson’s
commentary
comes
at
a
time
when
the
broader
crypto
community
appears
enmeshed
in
pessimism.
He
expressed
concern
over
the
current
trend
where
it’s
become
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,
reflecting
on
the

cyclical
nature
of
market
sentiments.

Related
Reading

Thompson
pointed
to
the
reactive
nature
of
the
market,
particularly
surrounding
major
events
like
ETF
launches.
He
revisited
the
aftermath
of
the

US
spot
Bitcoin
ETF
launch,
which
contrary
to
the
bullish
anticipation,
saw
Bitcoin’s
price
plunge
from
$49,000
to
$38,000,
marking
a
steep
22%
decline
in
just
12
days.
This
event,
he
argued,
should
serve
as
a
cautionary
tale
about
the
market’s
tendency
to
move
against
consensus
expectations.

Addressing
the
most
recent
market
dynamics,
Thompson
highlighted
the
significant
impact
of
the
sell-off
that
dampened
the
spirits
of
market
participants,
discouraging
the
usual
strategies
of
buying
the
dip
with
leveraged
positions.
“It’s
clear
this
most
recent
selloff
has
finally
stung
market
participants
given
the
lack
of
leveraged
long
dip
buying,”
he
observed.

 

This
scenario,
according
to
him,
sets
the
stage
for
a
market
correction
that
typically
follows
a
pattern
of
initial
slow
recovery,
stabilization,
and
then
a
rapid
upward
movement
once
a
catalytic
event
occurs.
He
recalled
the
BTC
ETF
leak
in
October
as
a
“buy
the
news”
event
that
realigned
market
sentiment.

Furthermore,
Thompson
discussed
the
forward-looking
nature
of
financial
markets,
emphasizing
that
the
crypto
market
is
no
exception.
He
believes
that
the
market
has
already
adjusted
to
past
events
such
as
the

Mt.
Gox
saga
and
Bitcoin
sell-offs
from
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
remarked.

Related
Reading

Looking
ahead,
he
underscored
several
macro
and
microeconomic
developments
poised
to
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.
These
factors
are
expected
to
reduce
selling
pressure
(e.g.
Bitcoin
miners)
and
invigorate
market
sentiment.

Delving
deeper
into
market
technicals,
Thompson
pointed
out
that
several
key
indicators
are
at
cycle
lows,
which
historically
precede
upward
movements.
He
noted,
“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.”
This
combination
of
factors,
according
to
Thompson,
signals
a
potential
market
bottom
forming.

In
a
bold
closing
prediction,
Thompson
projected
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
stated
confidently.

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

Featured
image
from
Shutterstock,
chart
from
TradingView.com

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Author: Jake Simmons

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