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In the world of cryptocurrencies, the transition of trends from rising to falling often misleads investors. The famous figure Andrew Kang, who manages billions of dollars, highlighted the risks of early purchasing during market downturns. Kang also holds an optimistic outlook for memecoins in 2025. Let’s review his assessments.
Effective Buying Times
According to Kang, during periods when the market transitions from rising to falling, corrections following market structure breaks are usually longer and more severe than expected. Investors face significant losses when they do not fully understand the nature of these corrections.
Kang advises against buying Bitcoin or other cryptocurrencies when the market is only 10% below its peak and few are showing a bearish trend. In such scenarios, there is not enough selling pressure to drive prices down.
Effective buying opportunities arise during more severe downturns when the market has completely cleared out weaker participants. These opportunities become apparent during widespread liquidations and exits, questioning the future viability of cryptocurrencies.
Strategic Timing is Essential
According to Kang, the best time to buy is when market sentiment is at its lowest, and most people believe that cryptocurrency is gone forever. At these points, the market is usually in an oversold condition, and prices are at or near their lowest levels. This offers investors a more favorable risk-reward ratio.
Kang notes that more than 98% of altcoins have reached their cycle peaks, predicting that only a small portion will reach potential new highs in the fourth quarter of 2024 or the first quarter of 2025.
Highlighting Bitcoin’s transition to a super-cyclical asset, Kang states that Bitcoin is beginning to exhibit both historical cyclical behaviors and more mature macro asset characteristics. This dual nature can influence price movements, making Bitcoin more flexible and predictable compared to previous cycles.
Memecoins Have Great Potential
Emphasizing the unique potential of memecoins despite their inherent volatility and speculative nature, Kang suggests that only a few memecoins will reach new highs.
This underscores the need for investors to be extremely selective when evaluating investments in this category. According to Kang, most memecoins will not perform well.
