Many analysts and KOLs have different opinions on what stage the current market is in. Jason Choi, co-founder of Tangent, recently said on X that the signals of the market peaking in 2021 have appeared again recently. These signs include:

  • The market has reasons to remain long (go long): The market has credible reasons to remain long (go long).

  • Large VC funds complete fundraising: Often the investors (LPs) in these funds are late-cycle players, meaning they tend to get involved when the market is near its peak.

  • Scams targeting the mainstream market are beginning to appear: the recent phenomenon of celebrities issuing coins is the best example.

  • Prices remain stagnant: Market prices have been stagnant for three months with no significant fluctuations.

  • High Open Interest (OI): Open Interest (OI) has been at high levels recently.

  • Stablecoin net inflows have stalled: Stablecoin inflows have begun to decrease, which may mean that the rate of new funds entering the market has begun to slow down.

However, Jason Choi also admitted that these top signals have some limitations. For example, although OI is at a high level, it is not obviously biased towards the bulls, the Alt season has not yet appeared, the relaxation of regulatory policies is beneficial to the market, etc. These are all factors that investors need to consider when making investment decisions.

On the other hand, regarding the phenomenon of many institutional investors in the market expressing bullish arguments, Jason Choi believes that when facing market peaks, fund managers will generally tend to maintain a bullish attitude towards cryptocurrencies because the main focus of fund managers is The mission is to manage and maintain the investment allocations of institutional investors (LPs) in cryptocurrencies, rather than their cash positions. This means that their main focus is investing in cryptocurrencies rather than holding cash.

Additionally, if money managers choose to avoid risk during market peaks (e.g., sell before an “obvious” catalyst like the ETH ETF appears), but turn out to be wrong, they could lose their jobs. However, no one would blame them if they chose to continue holding risky positions even if the market fell, because choosing to maintain exposure would be considered normal behavior when the market is generally bullish. Finally, Jason Choi concluded:

"There will be a lot of noise when the market reaches its peak (such as various news and market sentiment), which makes the market peak appear very unstable and unpredictable. But this situation is inevitable in every market cycle."

This Article Has the Cryptocurrency Market Peaked? Tangent co-founder Jason Choi counts the top signals first appeared on Zombit.