According to one analyst, after Bitcoin (BTC) recently rose by over 20% to $67,000, investors may want to cash out their profits.
However, 10x Research founder Markus Thielen warns that such a move could be costly, especially when a potentially significant event is just around the corner.
In his latest newsletter, Thielen warned investors against taking profits or shorting Bitcoin ahead of former President Donald Trump's speech in Nashville. “Taking profits or even shorting Bitcoin ahead of Trump's speech in Nashville could become an expensive practice,” Thielen wrote.
Trump, who is also the Republican candidate in this year's presidential election, is scheduled to speak at the Bitcoin Conference in Nashville on Saturday. There is speculation that Trump may announce his plan to make Bitcoin a strategic reserve asset.
Thielen also noted that Bitcoin was trading close to $69,000, the all-time high of the previous bull market. This level is often considered a “line in the sand” by market technicians, with a possible “parabolic move” occurring if prices manage to stay above it.
Thielen believes Joe Biden's withdrawal from the presidential race paves the way for a Trump victory in November. According to him, this could mean an early departure for US Securities and Exchange Commission Chairman Gary Gensler, who is known for his critical stance towards the crypto industry. While Gensler's term will officially end in June 2026, Thielen expects his resignation to coincide with Trump's inauguration in early 2025.
The former president's speech is scheduled to be held in Nashville on Saturday at 22:00 ET.
*This is not investment advice.