Andrew Kang Forecasts Bitcoin’s 2025 Surge, Cautions On Near-Term Corrections
In Brief
Mechanism Capital co-founder Andrew Kang shared a post on the social media platform X, providing his insights on the cryptocurrency market.
Co-founder of the venture capital firm Mechanism Capital, Andrew Kang shared a post on the social media platform X, where he provided his insights on the cryptocurrency market.
In a post, he pointed out that this is the first cycle and a full bull market for many cryptocurrency investors. During this bull market, Bitcoin’s multi-day decline was relatively minor, limited to 20%, and it appears that many investors increased their holdings during the last market correction in April.
However, in the previous cycle, the market frequently underwent leverage wipes, leading to retracements of 30% to 60%, which resulted in losses amounting to hundreds of billions of dollars. Andrew Kang emphasized that each cycle follows a different paradigm. When investors become too comfortable and believe that certain events are impossible, it is often the moment when unexpected setbacks occur.
He acknowledged that he currently maintains a bearish outlook. However, this is not a recommendation to short the market or liquidate all holdings. Andrew Kang advised investors to be mindful of risks and avoid placing everything on a single transaction, as higher-than-expected volatility could lead to significant losses.
Crypto Market Mirrors May 2021 As Ethereum ETFs Stir Investor Optimism
He noted that the current market conditions are more similar to those of May 2021 rather than June 2021 or December 2020. During that period, investors had grown accustomed to continuous price increases, with every dip being quickly reversed. However, following a correction from $64,000 to $45,000, many investors bought in, anticipating another swift recovery. Instead, the market bottomed out further, despite widespread expectations that more retail investors would enter, seeing $40,000 as a strong support level.
Andrew Kang pointed out that the current market environment mirrors the past one, which was approximately 9-10 months after bullish momentum started. This time, the focus is on the Ethereum exchange-traded funds (ETFs), with prominent traders predicting higher prices. He agreed with GCR’s perspective on the multi-year timeframe, anticipating new heights for Bitcoin in 2025. However, he cautioned that not all altcoins will achieve the same growth. Andrew Kang also emphasized that the market could still undergo significant corrections over a multi-month horizon.
At the time of writing, Bitcoin is trading at $62,303, reflecting a decline of over 3.19% in the past 24 hours, according to data from CoinMarketCap. This significant drop has sparked considerable bearish sentiment across the broader market. Meanwhile, Bitcoin’s market dominance is currently at 54.17%, marking a slight increase of 0.19% over the previous day.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
