Quinn Thompson, Chief Investment Officer at Lekker Capital, asserts that the current discouraging sentiment and price declines present a buying opportunity in the crypto market, particularly for BTC and ETH. Despite bearish consensus, institutional traders' strong engagement and stablecoin liquidity inject optimism for a potential upswing, challenging short-term pessimism with long-term growth prospects.
Despite recent market declines, institutional activity remains strong, suggesting robust support as Thompson advises patience over crypto bearish sentiment.
Lekker Capital Sees Current Market as Buying Opportunity
Quinn Thompson, Chief Investment Officer at Lekker Capital, highlights how current bearishness in crypto markets appears counterintuitive. He believes the market drop presents buying opportunities. Institutional involvement remains robust with $900B in crypto volumes noted in Q3.
"This most recent selloff has finally stung market participants given the lack of leveraged long dip buying. It’s one of the most obvious and attractive crypto buying opportunities of recent memory."
Quinn Thompson
Thompson emphasized the unusual popularity of bearish views despite robust market indications. He noted that cyclical setbacks, like government BTC sales, continue to shape market sentiment but should not deter long-term investors.
Institutional Investors Drive Market Despite Price Drop
The recent decline in crypto prices, including BTC’s fall from $49,000 to $38,000, served as a reminder of market volatility, yet institutional investors remain a key market driver. The institutional derivatives market reflects strong interest and confidence in the asset class.
Retail sentiment has swung, showing extremes in Fear & Greed Index readings. However, the absence of leveraged positions suggests a shift towards a more stable market structure, with potential for future gains.
Past Cycles Hint at Future Crypto Gains
Past market cycles, such as previous ETF launches, often began with sell-offs but were followed by positive movements as fear dissipated. These past patterns are expected to repeat based on current market data.
Experts like Thompson anticipate that price corrections will stabilize. This could lead to potential increases in key assets, with expectations for ETH to reach $7,000 and BTC to target $100,000 by the year's end.
Key Takeaways
- •Quinn Thompson of Lekker Capital says crypto bull run isn't over.
- •Current market drop is seen as an attractive buying opportunity.
- •Institutional activity suggests strong underlying market support.