‘Meme Coins Will Come Back’ – Millionaire Trader Predicts Multi-Billion Dollar Crypto Price Crash
Andrew Kang – the popular millionaire crypto trader and co-founder of Mechanism Capital – predicted on Monday a multi-billion dollar crypto crash to come before memecoins make a triumphant return.
Prepare For Crypto Crash, Says Kang
In an X post, Kang highlighted the culmination of Bitcoin sell pressure from Germany, Mt. Gox, and the Bitcoin ETFs as forces that will likely break the asset’s current price support levels.
“The only buyers seem to be leverage and short-term traders knife-catching,” he wrote. “These moves typically result in a multi-billion dollar cascade.”
With Mt Gox, German coins, ETF selling on the horizon, I do not believe that support levels and ranges will hold
NVDA looking like a local top
The only buyers seem to be leverage and short term traders knife catching
These moves typically result in a multi billion dollar… https://t.co/4t70LPP25b
— Andrew Kang (@Rewkang) June 24, 2024
Bitcoin has been down 10% over the past month, with the asset crashing another 6.5% on Monday to under $60,000 per coin. According to Coinglass, the crypto market at large has suffered $314 million in liquidations over the past 24 hours amid the volatility.
Part of the market’s panic surrounded the announcement that Mt. Gox would finally begin repaying customers their 141,686 BTC ($8.62 billion) held by the rehabilitation trustee. Having accumulated massive unrealized profits on their long-lost coins, some suspect customers will sell their Bitcoin en masse once they get their money back, causing Bitcoin’s price to crash.
The trader said that Ethereum might be even more overheated, with ETH open interest on centralized exchanges now at $13.5 billion. That’s over half of Bitcoin’s $23.7 billion figure, despite ETH’s market cap being just one-third the size of BTC.
“It’s running hot, especially considering $BTC leverage is quite high alone,” he said.
Kang also noted that Nvidia (NVDA) – the chip producer whose stock has soared 149% year to date – is “looking like a local top” after falling 9.4% over the past week.
“Things don’t go up in a straight line forever,” he added. “We’ve had 9 months of up only. Corrections are normal and healthy.”
Meme Coins Will Still Prevail
Despite the local pullback, Kang maintains that meme coins will make a strong comeback with time.
Things are already in motion for a doge ETF and culture coins/memecoins will come back
Things don’t go up in a straight line forever
We’ve had 9 months of up only
Corrections are normal and healthy https://t.co/Uv5Tqcsolx
— Andrew Kang (@Rewkang) June 24, 2024
“Things are already in motion for a doge ETF,” he noted.
His prediction reflects that of BitMEX co-founder Arthur Hayes, who said earlier this month that it’s a “high market cap thing” for which Tradfi firms would be eager to slap together an ETF.
In early April, Kang published an essay on “culture coins,” which he described as “a new class of memecoins” that “embody the beliefs of real-world communities that have shared values, identities, lifestyles, political views.” By name, some coins he included in that camp were TRUMP, BODEN, MOUTAI, and ZYN.
