Renowned cryptocurrency analyst il Capo has expressed caution despite Bitcoin’s remarkable strength and recent price surge, and shared his latest market views.
Known for his dissenting views, il Capo has previously expressed skepticism about Bitcoin’s ability to sustain its rally beyond $100,000.
In a recent statement, he congratulated those who profited from the market’s upward momentum but reiterated his decision to stay out of the market for weeks: “At this point, it doesn’t matter if Bitcoin breaks $98,000, $99,000 or even $100,000. A local top could form at any moment and this move could completely retrace.”
il Capo outlined several factors that contributed to his caution:
Extreme Individual FOMO and Memecoin Speculation
- Retail investors are entering the market in a herd mentality, and many are turning to memecoins.
- The Memecoin rally appears to have overextended, which is considered an unhealthy sign.
Geopolitical Concerns
- The analyst expressed concern over escalating geopolitical tensions, particularly with the US leadership and the conflict in Ukraine.
- il Capo criticized current political strategies and warned of potential global instability.
US Government Bitcoin Assets
- The US government holds 208,109 BTC worth approximately $20.15 billion.
- Recent approvals for the sale of Bitcoin seized from Silk Road could potentially lead to politically motivated market volatility.
The Divergence Between Bitcoin and the Dollar
- Despite Bitcoin's rise, the dollar has strengthened, signaling a potential divergence.
Weakness in Altcoins
- Many altcoins are testing major resistance levels, with only Bitcoin and memecoins showing notable gains.
- The analyst predicts that altcoins could face corrections of 60-80% if his thesis holds.
il Capo noted that patience is important in volatile markets:
“I don't see it as a wasted opportunity or a missed train. Sometimes it's better to just let the trains pass you by and wait for the one that will take you safely to where you really want to go.”
*This is not investment advice.