- Crypto investor Scott Melker says he would love to see more upside in the market influenced by interest in Spot Bitcoin ETFs and the start of the crypto bull cycle.
- Yet, Melker warns of signs the market may be overheating, including memecoin surges and other bearish indicators, hinting at a possible correction.
- Despite current market excitement, macro-analyst Ben Cowen suggests retail investors may delay their return to crypto.
Crypto investor and podcast host Scott Melker, also known as the ‘Wolf of all Streets’ has some concerns about the current market. Melker, with close to one million followers on X (formerly Twitter), said considering the interest in the new Spot Bitcoin ETFs and the start of the crypto cycle, he wants to believe that the market goes a lot higher.
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However, there are some alarm bells according to Melker, which are usually prohibitive of aping into the market: memecoins and alts running extremely hot, severely increased levels of greed and a bearish trend based on technical indicators.
I want to believe that we go much, much higher. However… most of the top signals I would normally look for when I am not FOMOing are present – memecoins going insane, huge run on alts to historically overbought, bearish divergences showing across the board on high times frames and max greed.
Scott MelkerThe host of ‘Macro Monday’ said—despite not making predictions—that we are likely due for a bigger correction and a new rally towards later in the year. His observation is that nobody seems to pay attention to the many signals indicating “the top is in.”
His comments come after Bitcoin made new all-time highs at $73,750.07 (AUD $112,722.48) on 14 March, but has dropped since a solid 10% in just under five days—that’s a drop by approx. USD $8k (AUD $12.2k).
Is Retail Still on The Sidelines?
Ben Cowen, macro-analyst with a PhD in Engineering, thinks not everything in the investment space is straightforward and we should not expect retail to come back anytime soon. He points to the 2019 cycle, where BTC rallied over 300% and yet it took retail investors another 18 months to come back to crypto.
Cowen has a point, while many of the Boomer generation are likely flush with money and have their house paid off—now enjoying their retirement—they also keep spending up. Meanwhile, younger generations may not be as lucky and are still struggling with high house and commodity prices, and simply don’t have the money to buy into crypto.
And a lot of the current rally is arguably due to institutions or larger family offices putting money into the Spot Bitcoin ETFs.
So, what does it mean now for the crypto market?
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Dave Weisberger, Chairman of CoinRoutes, an institutional digital asset trading platform, suggested that this might signal a rise in Bitcoin dominance—a view Scott Melker concurs with, noting that the market may have reached its peak for now.
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