“Clearing Technology Stocks and Cryptocurrencies, 10X Research: Entering the Market Again at Lower Levels”
According to CoinDesk, market analysis firm 10X Research sold all of its technology stocks and most cryptocurrencies on the 15th, expressing a bearish outlook for the future. The main reason for this decision is the unexpected persistence of inflation. Additionally, with the expected decrease in interest rates in the bond market being less than anticipated, and the 10-year US Treasury yield surpassing 4.50%, risk assets may have reached a critical turning point. Founder Markus Thielen stated that they sold all technology stocks on the 15th after the poor performance of the Nasdaq index and the rise in bond yields. Currently, they only hold a small amount of promising cryptocurrencies, but overall, they maintain a bearish view on risk assets (stocks + cryptocurrencies) and hope to re-enter the market at lower price levels. Regarding cryptocurrencies, Markus Thielen also provided several bearish viewpoints on Bitcoin. He mentioned that the inflow of Bitcoin spot ETFs has been low, with most net inflows occurring in Q1. Furthermore, MicroStrategy (MSTR) has pulled back by 30%, but is still far above its fair value. The expected six interest rate cuts at the beginning of the year have now been reduced to three, and it is possible that there will be no rate cuts for the entire year. The price increase of Bitcoin in 2023 and 2024 has been driven by expectations of interest rate cuts, and the upward momentum may face serious challenges. Markus Thielen pointed out that after the speculative frenzy, unless prices continue to rise, ETF inflows tend to stagnate. However, Bitcoin prices have been stagnant since early March, with potential investors likely to adopt a wait-and-see attitude.
