Millionaire Trader Anticipates MultiBillion Dollar Crypto Price Crash Asserts Meme Coins Will Make a Comeback

Millionaire Trader Anticipates Crypto Price Crash, But Predicts Meme Coins Will Make a Strong Comeback


Andrew Throuvalas
Last updated:
June 24, 2024 15:32 EDT
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2 min read


9 Meme Coins Poised to Turn $100 into $25,000 in June.
Andrew Kang, a well-known millionaire crypto trader and co-founder of Mechanism Capital, has forecasted a significant crash in the multi-billion dollar crypto market before meme coins rise again.
Get Ready for Crypto Crash, Advises Kang
In a recent post, Kang pointed to various factors such as Bitcoin sell pressure from Germany, Mt. Gox, and the Bitcoin ETFs as potential drivers that could cause the asset’s current price support levels to break.
“The only buyers appear to be leverage and short-term traders trying to catch a falling knife,” he stated. “These actions are typically followed by a multi-billion dollar cascade.”
Bitcoin has declined by 10% over the last month, and on Monday, it fell another 6.5% to less than $60,000 per coin.
According to Coinglass, the entire crypto market has experienced $314 million in liquidations in the past 24 hours due to the volatility.
The market’s anxiety was fueled by the news that Mt. Gox would finally begin reimbursing customers with their 141,686 BTC ($8.62 billion) held by the rehabilitation trustee. Some speculate that these long-lost coins, which have accumulated substantial unrealized profits, will be sold en masse by customers once they receive their money, leading to a crash in Bitcoin’s price.
The trader also noted that Ethereum might be even more overheated, with ETH open interest on centralized exchanges now standing at $13.5 billion, which is more than half of Bitcoin’s $23.7 billion figure, despite ETH’s market cap being only one-third the size of BTC.
“It’s running hot, especially considering that BTC leverage is quite high on its own,” he mentioned.
Kang also observed that Nvidia (NVDA), the chip producer whose stock has risen by 149% year to date, is “showing signs of a local top” after dropping by 9.4% over the past week.
“Things don’t go up in a straight line forever,” he added. “We’ve had 9 months of continuous growth. Corrections are normal and healthy.”
Meme Coins Will Make a Strong Comeback
Despite the recent pullback, Kang remains confident that meme coins will make a strong return in the future.
“Plans for a doge ETF are already in motion,” he pointed out.
His prediction aligns with that of BitMEX co-founder Arthur Hayes, who stated earlier this month that it’s a “high market cap thing” for which traditional financial firms would be eager to create an ETF.
In early April, Kang published an essay on “culture coins,” which he described as “a new class of meme coins” that “embody the beliefs of real-world communities with shared values, identities, lifestyles, and political views.” Some of the coins he included in this category were TRUMP, BODEN, MOUTAI, and ZYN.
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