BCA Research Analyst: All typical top signals have appeared in the current cryptocurrency market

PANews, February 11th, according to Jinshi report, the team led by Juan Correa, the global asset allocation strategist of BCA Research, stated that the cryptocurrency market has shown all typical top signals, including two low-circulation memecoins personally launched by Trump. They believe that Trump's behavior of launching the coin "indicates a desire to pursue personal wealth rise rather than sharing the profits with new buyers". Despite the fact that institutional investors do not hold memecoin, and according to BCA's calculation, memecoin accounts for less than 2% of the entire Cryptocurrency market, strategists say that the surge in memecoin is a harbinger of a larger trend, namely that the market's consensus on Cryptocurrency has become very optimistic: the Bitcoin ETF becomes the most successful ETF issuance in history; BlackRock's CEO Larry Fink said that large investors are discussing whether to allocate 5% of their portfolios to Bitcoin. Fink even predicts that the price of Bitcoin may rise to $700,000. BCA team said, "We are concerned that this frenzy of optimism is a signal that the cryptocurrency market is approaching a peak." They pointed out that more than 90% of the bitcoin supply is currently profitable, historically a sign of a peak in bitcoin prices. They also added that eight of the top ten financial apps by downloads are cryptocurrency trading apps. In addition, the BCA team mentioned macroeconomic concerns, including the possibility of lower-than-expected deficit spending. "If the U.S. economy is colder than expected and the government is fiscally irresponsible, this will not be favorable for bitcoin to continue its explosive trend." They said that if the price of bitcoin falls to $75,000, they will "buy more aggressively." They also noted that if Trump pushes forward with plans to establish a strategic reserve of bitcoin, it could pose a risk to their view that "the price of bitcoin has peaked."