Popular crypto analyst Cole Garner issued a warning that the economic repercussions of the coronavirus pandemic have yet to be priced into the market.
In a series of tweets published April 21, Garner warned traders against being lulled into believing the worst of the economic impact of the coronavirus pandemic has already passed. Garner, citing hedge fund legends such as Ray Dalio and Raul Pal, argued against the idea that the market has already reached a bottom. Instead, Garner pointed to a similar bounce during the stock market crash of 1929, before equities eventually collapsed.
4/ “But we’re already up 30% off the bottom”
Do you really think we've reached bottom? pic.twitter.com/6EHDrU1XID
— Cole Garner (@ColeGarnerBTC) April 22, 2020
Garner quoted a Mar 9 tweet by Raoul Pal, showing how far the market could fall in the event of an economic recession or depression.
6/ Hedge fund legend & RealVision CEO @RaoulGMI frames the playing field:https://t.co/VQi2x7MheW
— Cole Garner (@ColeGarnerBTC) April 22, 2020
Garner also provided an aggregate of a dozen analysts he follows, finding the consensus expectation that the market would be down 50% from its all-time high.
7/ Just for fun, I surveyed a dozen of the smartest analysts I follow, to find out where they though the $SPX might bottom.
There was wide variance — but the aggregate expectation was about 50% off all-time-highs. pic.twitter.com/2u4Ub1nYpD
— Cole Garner (@ColeGarnerBTC) April 22, 2020
The crypto analyst said a crash in equities would have implications for high-risk assets such as bitcoin, eventually leading to a sell-off.
17/ If & when we leg down, risk-on assets like $BTC probably sell off.
Bitmex liquidation engine won’t make the same mistake twice.
But bitcoin could fill low orders.
— Cole Garner (@ColeGarnerBTC) April 22, 2020
Garner called the “big picture” for bitcoin bullish but predicted a sweep of the lows to come before the next breakout. He said a move down to the $4800 – $5600 range represented a buying opportunity.
22/ It’s bullish *big picture* — but a sweep of the lows could come first.
If we leg down, I’m a buyer from $5600 on down to $4800. pic.twitter.com/I9ik4Xb0GR
— Cole Garner (@ColeGarnerBTC) April 22, 2020
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