Peter Brandt Warns of Memecoin Crash as Bitcoin Hits $99K

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Veteran trader Peter Brandt, with over 50 years of market experience, has issued a stark warning about the future of meme coins. He believes these speculative assets could face a complete washout in the next market crash. However, despite the negativity and disbelief in the meme sector, meme coins rose 500% in 2024 with a whooping market cap of $120 billion in December.

After a tragic crash, the market is still gaining consciousness while Bitcoin is hovering around $99K the path to meme-coins and altcoins is indeed risky. Here is Brandt who is spilling the beans on meme hype created by celebrities.

Memes are highly speculative assets as they pump instantly with celebrity and political leaders’ support but can drop drastically while competing with bigger assets like Bitcoin. Yet, it is a hot choice for many big players to divert their investment portfolio and make a profit to buy more Bitcoin.

Having said that with Trump’s win meme, AI and stablecoins are expected to go higher than expected. With rising Bitcoin prices small traders are hoarding meme coins or other low-cap coins at lower prices to manage and reduce their risk appetite. 

Is this for the best? What’s coming next?

Brandt highlights the dangers of investors chasing trends with heavy leverage, hoping for quick riches. While Bitcoin’s rise from $0.07 in 2010 to its current level of $100K is legendary, he warns that such explosive returns are unlikely to happen again. His primary concern lies with altcoins and meme coins, which he says are far riskier. 

The biggest drawback of memecoins is their nature which itself reveals their dependency on celebrities and hype created by market analysts. According to Benjamin Cowen, new projects launched by many big players just to fool the naive investors who buy Bitcoin with a celebrity tag are more prone to losses if they back out from the project. 

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Crypto Crash Scenario

If the market crashes, Brandt predicts Bitcoin could lose 50% of its value, altcoins could plunge 90%, and meme coins might vanish entirely. He calls this scenario a natural outcome of speculative markets, where over-leveraged traders often get caught off guard during corrections. 

Despite his caution, Brandt remains optimistic about Bitcoin as a long-term investment, calling it the only digital asset with a proven track record. Overall, Bitcoin remains a good investment due to its long-term bullish outlook and strong institutional backing. He even predicted that Bitcoin could reach $327k by mid-2025. However, his outlook for the broader crypto market is much more cautious, urging investors to tread carefully, especially with high-risk assets like meme coins.