PANews reported on February 11 that according to Jinshi, the team led by Juan Correa, a global asset allocation strategist at BCA Research, said that all typical top signals have appeared in the current cryptocurrency market, including two low-circulation meme coins launched by Trump himself. They believe that Trump's behavior of issuing coins "indicates a desire to pursue personal wealth growth rather than sharing the benefits with new buyers."
Although memecoins are not held by institutional investors and account for less than 2% of the entire cryptocurrency market, according to BCA calculations, strategists say the surge in memecoins is a harbinger of a larger trend, namely that the market consensus on cryptocurrencies has become very optimistic: Bitcoin ETFs have become the most successful ETF launch in history; BlackRock CEO Larry Fink said that large investors are discussing whether to allocate 5% of their portfolios to Bitcoin. Fink even predicted that the price of Bitcoin could climb to $700,000.
"We are concerned that this frenzy of optimism is a signal that the cryptocurrency market is close to a top," the BCA team said. They noted that more than 90% of the bitcoin supply is currently in profit - historically, this ratio is usually a sign that the price of bitcoin has peaked. They also added that eight of the top ten financial applications in terms of downloads are cryptocurrency trading applications. In addition, the BCA team also mentioned macroeconomic concerns, including the possibility that deficit spending will be lower than expected. "If the US economy is colder than expected and the government is fiscally irresponsible, this will not be conducive to Bitcoin continuing its explosive performance." They said that if the price of Bitcoin falls to $75,000, they will "buy more actively." They also pointed out that if Trump moves forward with plans to establish a strategic reserve of Bitcoin, it may pose a risk to his view that "the price of Bitcoin has peaked."
