Cryptocurrency

Crypto Research Firm: We Sold All Last Night, We Are Bearish On Risk Assets

In a significant shift in strategy, cryptocurrency research firm, 10x Research, has revealed it sold most of its holdings in risk assets, including technology stocks and cryptocurrencies. This decision, detailed in an investor note released by the firm’s founder Markus Thielen, stems from growing concerns about inflation and a changing economic landscape.

Economic Pressures Prompt Asset Sale

Thielen’s note highlights several factors influencing 10x Research’s decision. A key concern is rising inflation in the United States, with projections from Bank of America suggesting Consumer Price Index (CPI) inflation could reach 4.8% by the November elections. This would significantly surpass the Federal Reserve’s target of 2%.

Read Also: John Deaton’s Notable Reference: “XRP Was Solving the Friday Night Problem”

Further complicating the investment environment is a shift in the bond market. The US bond market currently anticipates fewer Federal Reserve rate cuts this year compared to earlier forecasts. Additionally, 10-year Treasury Yields have reached their highest point since November 2023, at 4.61%.

These combined factors have led 10x Research to believe that risk assets are vulnerable to a significant price correction. “We sold all our tech stocks last night as the Nasdaq is trading poorly and reacting to the higher bond yield,” stated Thielen. “We only hold a few high-conviction crypto coins. Overall, we are bearish on risk assets.”

Disappointing Performance of Bitcoin ETFs Raises Concerns

The performance of US-listed Bitcoin exchange-traded funds (ETFs) further reinforces 10x Research’s cautious stance. Despite the initial surge in Bitcoin prices following the approval of these ETFs in January, inflows have slowed dramatically. The five-day average net inflows have dropped to zero this month, compared to nearly $12 billion earlier in the year.

Read Also: Grayscale: Ethereum Is Like New York City, Vast, Expensive, but 10x Larger Than Any Other Competing Network

Bitcoin Halving and Market Volatility

The upcoming Bitcoin halving this month (April 2024), which will cut Bitcoin mining rewards in half, presents another layer of uncertainty. While such halvings have historically triggered price increases due to perceived scarcity, Thielen believes current market conditions might mute any potential rally.

In response to criticism regarding a perceived change in stance on Bitcoin, Thielen defended 10x Research’s trading strategy. He emphasized a focus on “continuous analysis” and adaptation to market conditions. “There are times when we advocate for a total risk-on approach and when the priority is safeguarding your capital,” Thielen explained.

Concluding the investor note, Thielen promised a return to the market under more favorable conditions: “Will buy back with both hands at $52,000 – promise.” At the time of writing, Bitcoin is currently trading at $62,986.


Follow us on Twitter, Facebook, Telegram, and Google News

Solomon Odunayo

Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.

Recent Posts

XRP/USD Reaches 0.702 Retracement of 2021-2024 Range. Here’s the Significance

In a recent analysis, prominent crypto analyst Blockchain Backer shared a key observation on the…

24 minutes ago

If You Missed Polygon, Don’t Miss Qubetics: $500 Could Translate Into $326K with This Best Crypto to Buy Now!

Every crypto investor has that one big regret—the project they heard about early but didn’t…

36 minutes ago

Breaking Down the Best: Why Qubetics, Ethereum, and Chainlink Are Leading November’s Crypto Scene

November 2024 is heating up the crypto scene as major players like Ethereum (ETH) battle…

5 hours ago

Pro-crypto Attorney John Deaton Calls $100 Billion XRP Market Cap

XRP, one of the most prominent digital assets in the crypto market, has reached significant…

6 hours ago

Crypto Lists Reaches 150 New BTC Casino Reviews

The popular review site CryptoLists.com celebrates their latest achievement today, reaching 150 reviews of newly…

8 hours ago

Ripple CEO Garlinghouse Reacts to SEC Chair Gensler’s Resignation

The cryptocurrency industry has begun celebrating the forthcoming resignation of the U.S. Securities and Exchange…

9 hours ago