Come back after the summer, confirms one analyst on crypto markets
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Bitcoin continues to flash warning signs, according to Quinn Thompson, CIO at Lekker Capital, as his fund remains firmly bearish on crypto heading into the summer.
Key facts
- Bitcoin continues to flash warning signs, according to Quinn Thompson, CIO at Lekker Capital, as his fund remains firmly bearish on crypto heading into the summer
- One of the clearest signs for Thompson is the Magnificent Seven's underperformance relative to the broader Nasdaq
- Yet cutting spending could undermine the semiconductor and AI infrastructure trade that has supported the broader technology complex
Summary
Lekker Capital CIO Quinn Thompson argues bitcoin remains under pressure due to DAT issues, Strategy's STRC preferred shares, and quantum computing concerns, contributing to one of the largest divergences between crypto and technology stocks in recent years. Thompson is also bearish on tech, citing weakening Mag 7 leadership, rising hyperscaler debt, declining free cash flow from AI-related capex spending, and trillions of dollars in upcoming IPO supply. Combined with weakening liquidity conditions and heavy selling pressure, these factors have contributed to one of the largest divergences between bitcoin and technology stocks in recent history, with crypto significantly underperforming despite continued strength across much of the tech sector.