Lekker Capital CIO Predicts Strong Returns Post Crypto Liquidation Event
Lekker Capital CIO Quinn Thompson claims the crypto market experienced a "positioning rinse," leaving consensus misaligned. He identifies this as a rare event occurring once or twice a year, similar to past instances in September 2023 and February 2025.
Crypto Market Outlook
- Thompson argues that the Bitcoin and Ethereum open-interest flush on October 10 is not a reason for bearish sentiment but indicates potential strong future returns.
- This event cleared more leverage than the entire January-April 2025 period, presenting an opportunity likened to pre-Trump victory 2024.
- The historical pattern suggests selling after such deleveraging events is typically unwise.
- Market veteran Alex Krüger and Framework Ventures co-founder Vance Spencer support this view, indicating poor risk/reward for medium-term bearishness post-event.
- Thompson ties the crypto setup to a favorable macro environment, referencing a significant geopolitical image as a bullish indicator for gold and cryptocurrency.
At the time of reporting, BTC was trading at $109,101.
