Bitcoin Headed Beaded Below $ 60K Says Hot-Handed Crypto Hedge Fund Manager

“I Could See US Going Back to A Five Handle by the end of the year,” Quinn Thompson, Founder of Crypto Hedge Fund Lekker Capital, Told Coindesk in An Interview. A “FIVE HANDLE,” IE A PRICE BETWEEN $ 50,000 and $ 59,999, Wuld Be Down Substantally From the Already Shaky Current Than Two Months Ago.

“I DON’T THINK IT HAPPENS QUICKLY, WHICH IS WHY IT Wuld be Very Painful and Shocking To People Because Nothing About the Current Market Conditions is Very volatile, wih. Added. “IT’s this sort of figrent Market Environment, A SLOW GRIND DOWN THAT IS ALMOST more unbearable for people because they’re like, ‘is it over?

Thompson, Who Had Been Bearish from From Far Higher Levels, Has Repeatedly Called The White House’s Crypto AnnounCements-Be It The Sovereign Wealth Fund Oen. “Nothingburgers” and “Sell The News” Events. He have also argued that strategy’s (mstr) constant bitcoin buys aren’t necyssarily bullish for the cryptocurrency, since they seem to be the only significant bid.

The Economy’s Four HeadwindsCentral to Thompson’s Thesis is the Idea that Trump Administration’s Various’s Policies Will Likely Hurt the Economy for the Next Six to Nine MONTS.

FIRST, The Department of Government Efficiency (Doge), In Its Effrts to Reduce The US deficit, is Bent on Cutting Government Spending – Wich Has Been One of the Largest Drivers of. The Labor Market Was Already Wobbly WHEN The BIDEN TEAM HANDED Over the Reins to Trump, Thompson Said, and The New Government’s Fiscal Arm Isn’r Interared in Proping Things Up Anymore.

“People get caught up in the Politics of It,” Thompson Said. “We Canagree on Whethzher We Need The Department of Education or Not. But Those Dellars Were Being Printed and Going Into People’s Pockets, and Those people, and vent and vent. WAS GROWTH POSITIVE. ”

Elon Musk, The Main Force Begind Doge, Said Last Week That He Was Aiming to Cut $ 1 Trillion in Government Spending by the End of May; He Also Said He Wanted to Cut 15% of the Government’s Annual SPEENDING, MEANING ALMOST $ 7 Trillion.

Even IF Doge Fails ITS STATED OBJECTIVE AND ONLY Manage to Cut, Say, A Hundred Billion Over the Course of Four Years, The Bigger Cuts Are Likely to Occur at the Enda, Netfinning of Trump. This Means that Doge’s Impact on the Economy and Consumer Sentiment Is Likely to Be Felt in the Coming MONTS, No Matter Wheth The Agency Actually Succeeds or.

Second, The Crackdown on Illegal Immigration at the Southern BORDER – Combined with The Renewed Emphasis on Deportations – is Bound to Affect The Labor Market, Thompson Said. Migration is Growth Positive Because It Puts Pressure on Wages; if that labour pool Dries up, workrs will Demand Higher Salaries, WHICH Some Businesses Won’n Be Able to Afford.

Thompson’s Third Issue is Tariffs. The Trump Adminstation Keeps Changing Up Its Tariff Threats on a Day-to-Day Basis, SomeTimes Promitizing New Ones, SomeTimes Calling Them Off, Creating Doubt as To-Tovor. Go Into Effect. But the Important Thing About Tariffs is that Create Uncertainty for Businesses, WHICH May Elect to Delay Investment or Hiring Decisions Until The Tariff Sitiation is reoloved.

Finally, The Federal Reserve Doesn’t Seem to Be in A Hurry to Loosen Financial Conditions Because Inflation Data Hasn’n Been Great. The US Central Bank Cut Interest by a Full Percentage Point at the End of 2024, to 4.25%-4.5%, and Even that Wasn’t Enough to Push Bitcoin Above $ 110,000. Thompson Says He Expects the Fed to Cut AnyWhere Between 25 and 75 Basis Points in 2025, But That Cuts Will Be Spread Out in the Second Half of the Year.

“I Think There’s A Lot More Coordination Going on Between the Treasury and the Fed Than People Want To Belide,“ Thompson Said. “People Thought Trump and [Fed chair] Powell Wound Be Bickering, But They’re Actual Kind of the Same Team Right Now. [Secretary of Treasury] Bessent and Trump Are Bringing Growth Down, and that Helps Powell Achiev Lower Inflation. ”

WHEN WILL The BOTTOM BE?With Such Headwinds Working Against Risk-on Assets Like Stocks and Bitcoin, The Crypto Sector Is Unlikely to Have A Good Year, Thompson Said. The fact that white House doesn’t seem overly concerned about a potential recession is also a strong signal, he said.

“Bessent is Coming in Saying, ‘We Need to Right the Ship.’ And Righting the Ship Means Cutting Off The Juice That Was Powering These Crazy Asset Prices.

But How Long is Trump Likely to MainTain Course? Until It Becomes Too Painful and Even Trump’s Political Base Tells Him to Cut It Out, or Until The Beginning of 2026 – You Can Be Pushing A Country Into Alectm.

“I equate this to a Controlled Burn. They’re Trying to purposephully Clear the Brush so that it doesn’t become a Bigger Problem. But SomeTimes Controlled Burns Bere. “I Think It’s Going to be A Long Kind of Slog Through The Year As They Tru to enct the bestse policies.”