Has the Cryptocurrency Market Reached Its Peak Jason Choi Cofounder of Tangent Examines Top Signals

Has the Cryptocurrency Market Reached Its Peak Jason Choi Cofounder of Tangent Examines Top Signals

Has the Cryptocurrency Market Reached Its Peak Jason Choi Cofounder of Tangent Examines Top Signals

Many analysts and KOLs have different opinions on the current stage of the market. Jason Choi, co-founder of Tangent, recently expressed on X that signals of the market peaking in 2021 have reappeared recently. These signs include:

– There are reasons for the market to remain bullish: There are credible reasons to continue holding long positions in the market.
– Large venture capital funds completing fundraising: Typically, the investors (LPs) of these funds are late-cycle participants, meaning they often get involved in the market when it is approaching its peak.
– Scams targeting the mainstream market are beginning to emerge: The recent phenomenon of celebrities issuing their own coins is a prime example.
– Prices remain stagnant: The market price has been stagnant for three months without significant fluctuations.
– High Open Interest (OI) in futures contracts: Open Interest (OI) has been consistently high recently.
– Stagnation in net inflow of stablecoins: The inflow of stablecoins has started to decrease, which may indicate a slowing down of the pace at which new funds enter the market.

However, Jason Choi also acknowledges that these signals of a market peak have limitations. For example, although OI is at a high level, it does not show a clear bias towards the long side. Additionally, Alt season has not yet occurred, and relaxed regulatory policies are favorable for the market. These are all factors that investors need to consider when making investment decisions.

On the other hand, regarding the phenomenon of multiple institutional investors expressing bullish views in the market, Jason Choi believes that fund managers generally tend to maintain a bullish attitude towards cryptocurrencies when facing market peaks. This is because their primary task is to manage and maintain the investment allocation of institutional investors (LPs) in cryptocurrencies, rather than their cash positions. This means that their main focus is on cryptocurrency investments, rather than holding cash.

Furthermore, if fund managers choose to avoid risks during market peaks (e.g., selling before “obvious” catalysts like ETH ETFs appear), but their judgment is incorrect, they may lose their jobs as a result. However, if they choose to continue holding risk positions, even if the market declines, no one will blame them because maintaining risk exposure is considered normal when the market is generally bullish. In conclusion, Jason Choi summarizes by saying