- The well-known multibillionaire cryptocurrency trader and Mechanism Capital co-founder Andrew Kang forecast on Monday that a multibillion dollar cryptocurrency crash would occur prior to memecoins making a victorious comeback.
Kang Says Get Ready for the Crypto Crash
In a post on X, Kang emphasized that the asset’s present price support levels would probably be broken due to the confluence of sell pressure on Bitcoin from Germany, Mt. Gox, and the Bitcoin ETFs.
He noted that leverage and short-term traders appear to be the only buyers. Usually, these actions set off a multi-billion dollar chain reaction.
Over the previous month, Bitcoin has lost 10% of its value. On Monday, the currency fell 6.5% more, to less than $60,000 per coin. Amidst the volatility, the crypto market as a whole has seen $314 million in liquidations over the last day, according to Coinglass.
The news that Mt. Gox would eventually start paying consumers back for the 141,686 BTC ($8.62 billion) that were held by the rehabilitation trustee contributed to some of the market’s concern. Certain customers believe that when they receive their money back, they will sell their Bitcoin in bulk, driving down the price of the cryptocurrency because they have amassed enormous unrealized gains on their long-lost coins.
According to the trader, Ethereum may be even more overvalued given that the open interest of ETH on centralized exchanges is currently $13.5 billion. Although ETH’s market capitalization is only one-third that of BTC, that still represents more than half of the $23.7 billion value of BTC.
It’s becoming heated, he remarked, especially with the enormous leverage of $BTC alone.
Kang also pointed out that Nvidia (NVDA), a semiconductor manufacturer whose stock has risen 149% so far this year, appears to be nearing a local peak following a 9.4% decline over the previous week.
He went on to say that things don’t always rise in a straight line. We’ve only been up for nine months. Corrections are beneficial and usual.
Memes Will Continue to Be Popular
Even with the recent local decline, Kang is adamant that meme currencies will eventually see a significant resurgence.
His forecast is in line with that of Arthur Hayes, co-founder of BitMEX, who stated earlier this month that Tradfi firms would be willing to create an ETF for such a huge market cap item.
Kang wrote about culture coins in an essay he released at the beginning of April. He defined culture coins as a new kind of meme coins that represent the ideals of actual communities with common identities, values, and political viewpoints. He mentioned coins like TRUMP, BODEN, MOUTAI, and ZYN by name in that group.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
