The cryptocurrency market is experiencing a new wave of turbulence, and investors are wondering if it’s safe to re-enter the market. According to 10X Research’s Markus Thielen, the answer is not yet.
Having correctly predicted the recent downturn, Thielen remains cautious about buying the dip. He draws parallels between current market conditions and the collapse of the decentralized finance (DeFi) and non-fungible token (NFT) sectors after the 2021 bull market. That downturn severely impacted Ethereum (ETH), and now a similar pattern is emerging in memecoins, affecting tokens associated with Solana (SOL).
“This structural decline points to a weakening foundation, and now is the time to be cautious, not complacent,” Thielen said in a report published today. He predicted Bitcoin (BTC) is on a steady march toward $73,000, but said a new trend would be needed to trigger the next major rally.
Thielen also pointed to historical patterns, drawing a comparison between the current market cycle and previous downturns. “It’s not just the macro backdrop of the Fed turning hawkish near the top of the Bitcoin cycle that looks familiar, but also the micro dynamics where the underlying narratives are lost. Retail investors are facing a game they can’t win,” he said.
*This is not investment advice.
