The Kobeissi Letter has characterized the recent cryptocurrency market downturn as a 'growing pain,' suggesting that the market is approaching a bottom. In a November 16 thread, the macro research firm emphasized that the sell-off represents a structural shift rather than a collapse in the intrinsic value of cryptocurrencies. Historically, every downturn exceeding 25% has been succeeded by new record highs.
The firm pointed out that additional liquidity is anticipated to enter the market, citing Japan's $110 billion stimulus and potential $2,000 stimulus checks under President Donald Trump. It also noted that excessive leverage, with traders using 20x to 100x leverage, significantly contributed to the crash, triggering a cascade of liquidations.
Kobeissi Letter: Crypto Market Crash Seen as 'Growing Pain'
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