Markus Thielen, an acknowledged figure at 10x Research, recently stated that he plans to alter how he invests in cryptocurrencies because of rising financial risks and market uncertainty.
Thielen brought up concerns about risky investments like tech stocks and cryptocurrencies, mostly because of inflation rates that have been rising for an extended period without anyone expecting them to.
The Bank of America believes that US headline inflation could hit 4.8% by the election in November 2024. The most recent three-month average month-over-month CPI inflation rate was 0.4%. If things keep going at this rate, inflation will more than double the Federal Reserve’s goal of 2% by November.
10x Research’s Risky Asset Adjustment
Due to changes in economic indicators, 10x Research has decided to pull its funds out of risky investments during these times. Notably, the US bond market believes that the Federal Reserve will only lower rates three times this year, which is very different from what was expected earlier. Also, this month the 10-year Treasury Yields went up to 4.61%, which makes it hard to invest in risky assets.
Because Thielen was concerned, 10x Research sold all of its tech stocks and only kept a few high-conviction cryptocurrency positions. This choice indicates that people are not optimistic about risky investments.
The disappointing performance of US-listed spot Bitcoin exchange-traded funds (ETFs) adds to the bearish picture. Even though there was a lot of excitement when the SEC approved almost a dozen ETFs in January, there have been no new investments in these funds recently.
Thielen also talked about the possible effects of Bitcoin’s upcoming quadrennial splitting event on April 20. This event usually causes prices to go up because people think there will be a shortage. But Thielen thinks that the way the market is right now might keep any possible rises in check.
When people said things about Thielen’s company’s trading strategy, he pointed out how volatile crypto trading is and how flexible strategies are needed. He stated that he was going to boldly get back into the market at $52,000.Bitcoin was worth $63,045 at the moment.
