Michaël warned that “it’s going to be painful” for those who have been buying heavily into FOMO — otherwise known as a fear of missing out.
The extraordinary bull run seen in dog-themed coins including SHIBA INU and Floki Inu is not sustainable, a crypto analyst has warned.
Speaking to the CoinMarketRecap podcast, Michaël van de Poppe said the fact meme coins are popping is a signal “that we are getting quite far into the bull cycle,” adding:
“I’ve been responding to many messages regarding SHIBA INU, Dogecoin and Floki Inu — whether people should be buying those as they feel like they could be left behind.”
Michaël warned that “it’s going to be painful” for those who have been buying heavily into FOMO — otherwise known as a fear of missing out.
He added that “it’s kind of said to see that the spotlight of cryptocurrencies is being taken by meme coins at this stage, while crypto and blockchain are here for the future.”
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The Next Bear Market
Michaël believes that the current bull market has the potential to last into 2022, but said those who invest in meme coins could end up incurring hefty losses when there’s an inevitable contraction. He added:
“If there’s going to be a bear market at some point, those meme coins will be crashing heavily and most of them will just go to zero. So yes, you can be trading those, but will they be surviving the bear market? Obviously not … if you’re holding SHIBA INU, I guess you should be taking profits.”
On the issue of Bitcoin, he believes the exact length of Bitcoin’s bull run will depends on how fast it accelerates.
He believes a price in the region of $90,000 to $100,000 is “normal to expect during this quarter” — but dismissed targets of $200,000 to $300,000 within six weeks as “nonsense.”
Long term, he believes that Bitcoin will no longer operate in four-year cycles because the impact of halvings is getting lower. Michaël didn’t rule out the prospect of brutal sell-offs like those seen in 2018. He said:
“However, it will be more painful because there’s more people involved right now. So you will be hearing more stories of people losing money, and you will also be hearing stories of people losing money in the equities and real estate markets.”
But striking a more positive note, he added:
“The crisis will be painful, but if you look at it from a business perspective, if you have cash, it’s going to grant you a massive opportunity to get that Bitcoin at a relatively low price.”
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