Summary

The cryptocurrency market has been dealing with substantial selloffs recently due to various factors.

• The overall crypto market has seen a major decline amid updated inflation concerns.
• The Nasdaq index has faced about a 7% drop in recent sessions.
• Quinn Thompson, founder of Lekker Capital, emphasizes caution regarding risk assets in light of recent inflation reports.

Background

The selloff is linked to the previous burst of a speculative bubble in memecoins, contributing to the market’s decreasing momentum. This tendency has been exacerbated by increased risk-off stances in the stock market.

On Thursday’s market close, the Nasdaq dropped more than 2%, led by significant losses in chipmakers like Nvidia (NVDA), following underwhelming earnings results. Concerns have also arisen due to ongoing tariff threats from the U.S. government against nations including Mexico and Canada.

“Maximum caution is warranted in risk assets,” said Quinn Thompson, founder of Lekker Capital. “Inflation data is coming in way too hot for the Fed to cut rates in the near-term. Long-term inflation expectations are unanchoring to the upside…”

Thompson is eyeing a target of around $70,000 for Bitcoin by the end of March, hinting at potential bearish market pressures.