Assessing the Safety of Crypto Investments Amid Market Turmoil
As the cryptocurrency market grapples with significant price declines, a pressing question lingers for investors: “Is it safe?” For those with remaining capital, this query has become paramount following the recent downturn. Markus Thielen from 10X Research, who had accurately predicted the bearish trend leading up to this decline, suggests that caution remains the best approach rather than jumping in to buy the dip.
Thielen points to a scenario reminiscent of the speculative bubble in decentralized finance (DeFi) and non-fungible tokens (NFTs) that burst after the 2021 bull market. This collapse severely impacted Ethereum (ETH), which has yet to fully recover. Similarly, the current downturn has wreaked havoc on memecoins, substantially affecting not only Solana (SOL) but also a host of related tokens.
In his report released on Tuesday, Thielen emphasized that this ongoing structural decline signifies a weakening foundation within the market. He cautioned that now is not the time for complacency but rather for vigilance. He stated, “Bitcoin (BTC) is steadily heading toward $73,000. If history serves as a reliable guide, the next significant upward movement will necessitate a fresh narrative.”
