Peter Brandt Warns Meme Coins Could Go to Zero in Next Crash

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Peter Brandt, a well-known figure in financial trading, issues a cautionary note to all crypto enthusiasts, particularly those invested in meme coins. With a career spanning over 50 years, Brandt emphasizes that the risks associated with these digital assets have never been greater. He predicts that the next market downturn could potentially leave them in shambles.

The essence of his statement is straightforward: History might not follow the pattern some anticipate as closely as before, especially with regards to Bitcoin‘s rapid growth from $0.07 in 2010 to its present value. However, Brandt expresses apprehension not about Bitcoin itself, but rather the excessive hype surrounding alternative cryptocurrencies and meme coins.

He observes a tendency among investors who overly rely on debt to pursue fleeting trends in the hopes of becoming instantly wealthy. These individuals often invest heavily in assets that may not be particularly beneficial, banking on an unexpected financial windfall.

Brandt considers this strategy risky, particularly since market trends tend to change direction eventually. In his opinion, meme coins carry the highest level of risk and might experience a catastrophic collapse.

Speaking from a perspective of half a century in market observation, some individuals are likely to prosper moving forward. However, there’s a risk that an excess of overly optimistic investors may take on too much leverage, fail to recognize the peak, and suffer significant losses during the next 50% drop in Bitcoin, 90% decline in alternative cryptocurrencies, and complete collapse of meme-based assets.

— Peter Brandt (@PeterLBrandt) January 6, 2025

If the market experiences a downturn, he anticipates that Bitcoin (BTC) could potentially decrease by around half its current value. Similarly, altcoins may plummet by approximately 90%, while meme coins might disappear permanently. To him, this scenario is not merely speculative; it’s based on the typical patterns observed in speculative markets. Historically, such corrections have impacted traders, and he feels that another round of such corrective actions is imminent.

While many critics are entirely disregarding cryptocurrencies, Brandt takes a different approach. He owns Bitcoin as a long-term investment, believing it to be the sole digital asset with a verifiable history. However, his tone becomes cautious when discussing the entire market.

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2025-01-06 13:25