The analyst revealed that his firm has sold all tech stocks in anticipation of a bearish event. “We sold everything last night,” wrote Thielen.
The founder cited decreasing rate cuts, rising bond yields, and persistent inflation as the deterrents behind his bearish outlook. The analysis follows Bitcoin’s 11% drop over the past week, with the cryptocurrency trading at $61,988.93 at the time of publication.
Thielen attributed Bitcoin’s drop to waning expectations of a cut in U.S. interest rates. “Most of this 2023/2024 bitcoin rally is driven by expectations that interest rates would be cut, and this narrative is being seriously challenged now,” he added.
According to Daly, there’s “no urgency” for the US to cut rates. Furthermore, Thielen revealed that his firm still holds some “high-conviction crypto coins.” However, he clarified that the company’s overall sentiment remains bearish.
Thielen’s warning follows his previous bearish scenario for Bitcoin.
