Tushar Jain, co-founder of Multicoin Capital, stated that the current optimism in the cryptocurrency market is somewhat excessive, and that a correction or period of sideways consolidation may occur in the coming period.
In his assessment, Jain stated that the current market sentiment has reached a “slightly euphoric” level, emphasizing that a short-term pullback would not surprise him. However, he argued that it is not a sound strategy for investors to try to predict every short-term peak and trough.
According to the Multicoin Capital executive, investors need to shift their perspective to the longer term and avoid overtrading. Jain stated that instead of trying to time every short-term market movement, a more viable approach is to hold high-quality assets with strong investment claims and wait for those claims to materialize over time.
On the other hand, indicators regarding Bitcoin demand in the US market also point to weakening in the short term. According to Coinglass data, the Coinbase Bitcoin Premium Index has returned to negative territory, falling to -0.0198 percent. The index was at 0.0013 percent the day before.
The indicator tracking the difference between the Bitcoin price on Coinbase and other major global exchanges turning negative suggests a renewed weakening in buying appetite among US-based investors.
*This is not investment advice.