Millionaire Trader Predicts MultiBillion Dollar Crypto Price Crash But Believes Meme Coins Will Make a Comeback

Millionaire Trader Anticipates Multi-Billion Dollar Crypto Crash Before Meme Coins Make a Comeback


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


9 Meme Coins to Turn 100 Dollars into 25,000 Dollars in June.
Andrew Kang, a well-known millionaire crypto trader and co-founder of Mechanism Capital, has predicted a significant crypto crash before memecoins stage a strong return.
Get Ready for Crypto Crash, Kang Advises
In an X post, Kang pointed out the combined effect of Bitcoin sell pressure from Germany, Mt. Gox, and the Bitcoin ETFs as factors that could potentially break the current price support levels of the asset.
“The only buyers appear to be leverage and short-term traders knife-catching,” he stated. “These moves usually result in a multi-billion dollar cascade.”
Bitcoin has seen a 10% decrease in value over the past month, with a further 6.5% drop on Monday, bringing its value to under $60,000 per coin.
According to Coinglass, the crypto market has experienced $314 million in liquidations over the past 24 hours due to the volatility.
There was widespread panic in the market following the announcement that Mt. Gox would begin repaying customers their 141,686 BTC ($8.62 billion) held by the rehabilitation trustee. With customers potentially selling their Bitcoin en masse once they receive their money, it could lead to a crash in Bitcoin’s price.
The trader also suggested that Ethereum may be even more overheated, with ETH open interest on centralized exchanges now at $13.5 billion, 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 observed that Nvidia (NVDA), the chip producer whose stock has risen 149% year to date, is showing signs of a local top after declining 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 Thrive
Despite the recent pullback, Kang remains confident that meme coins will make a strong comeback.
“Things are already in motion for a doge ETF,” he noted.
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 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.” Some coins he included in that category were TRUMP, BODEN, MOUTAI, and ZYN.
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