Anthony Scaramucci, a leading figure in the cryptocurrency sector, argued that “TRUMP coins” played a significant role in the bear trend currently sweeping the crypto market.
According to Scaramucci, these memecoin launches led to a significant liquidity shift in the sector and triggered the start of the bear market.
Scaramucci stated that the bear market started earlier than many people think, saying, “In my opinion, the bear market started last January. This didn’t directly affect Bitcoin until October, but when you look at altcoins other than Bitcoin, you see that they haven’t performed well since January.”
Scaramucci specifically stated that tokens dubbed “Trump coins” have drawn significant liquidity from the market. “To be honest, TRUMP coins have sucked up a large portion of the liquidity in this space. People are hesitant to say it because of the sensitivity surrounding governance. But the industry has suffered from this,” he said.
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Scaramucci stated that the weak performance in the altcoin market has been ongoing for a long time, but added that this could actually be a positive sign from a cyclical perspective.
The experienced investor, noting that bear cycles in the crypto markets typically last 12 to 18 months, said that a large part of the current process may be complete. “Bear markets generally last 12-18 months. This means we may have passed more than two-thirds of the process,” he stated.
Scaramucci stated that while the current outlook might be pessimistic, change is inevitable given the nature of market cycles, adding, “The picture may look bad right now, but everything changes. We are very close to sunrise.”
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/anthony-scaramucci-explains-the-real-reason-behind-the-decline-of-bitcoin-and-altcoins-it-s-actually/
