Cryptocurrency influencer warns of challenges ahead in digital asset markets, predicting sideways movement

From Yahoo Finance.: 2025-03-27 12:53:00

Crypto influencer Meltem Demirors is pessimistic about digital asset markets post-relief rally. She attributes solid 2024 inflows to ETF hype and “Trump Pump,” but warns Q1 has been challenging with short-term holders selling at a loss. Demirors sees a bleak macroeconomic backdrop, with little more than a brief respite driven by retail traders and algorithmic CTAs.

Funding rates are not excessive, implying constructive conditions, but demand appears weak. Implied volatility in options markets is low, and Bitcoin volumes are down. Demirors predicts sideways movement due to Mt. Gox distribution and lack of catalysts. She highlights the impact of $800 million in weekly token unlocks on the market.

Demirors bluntly reminds traders that tokens don’t care about their opinions. She predicts a real test is still to come despite the current market rally. Global crypto market cap is at $2.84 trillion, down 0.02% in the last 24 hours.

Read more: Veteran analyst warns major trouble ahead for markets