Investor Gary Cardone said this week that Bitcoin (BTC) faces a simple problem – more sellers than buyers– and warned that a struggling Ethereum (ETH) and a wave of failing altcoin projects could pull the whole market down.
Ethereum was “a big risk,” Cardone said, and if Ethereum and Bitcoin treasury vehicle Bitmine Immersion Technologies Inc (BMNR) can’t survive the cycle, the fallout will “suck the life out of Bitcoin.” He said if Ethereum doesn’t do “something spectacular”, the hundreds of copycat projects behind it could implode. “The rest of the industry is cancerous,” he said, citing projects with no revenue, and described “a sucking sound in the digital asset industry.”
Ethereum’s price was trading at $1618, up over 2% in the last 24 hours. On Stocktwits, Ethereum was one of the top trending tickers. Retail sentiment around ETH remained in the ‘extremely bullish’ zone, while chatter stayed at ‘high’ levels over the past day.
“The asset needs real demand to recover,” Cardone said in an interview on Scott Melker’s “The Daily Wolf” on Yahoo Finance. “When supply exceeds demand, prices fall,” he said, adding that until the new money comes in, either the original whales step up and buy at higher levels, or the market languishes.
Cardone said he would buy 1,000 Bitcoin at $55,000 but was “done overpaying” and would prefer to layer in gradually than chase the bottom. He cautioned that the sell-off could deepen, with Bitcoin potentially falling to $38,000, where he said no legacy buyers would enter. “There are no buyers,” he said.
Capital Rotating From Crypto To AI IPOs
He said capital is rotating out of crypto and into upcoming IPOs, citing SpaceX (SPCX), OpenAI (OPENAI), and Anthropic (ANTHROPIC). Cardone cited legacy companies like IBM (IBM), Hewlett-Packard (HPQ), and BlackBerry (BB) trading like meme stocks and said the gains would go to the users of AI products – not the AI companies themselves.
Strategy (MSTR) would probably survive on Bitcoin treasury companies, Cardone said, but called the broader treasury-company trade “embarrassing”. Bitcoin had touched its rising 200-day moving average near $62,000, a level both called a historic buy point, amid capitulation from figures including Arthur Hayes and Cardano (ADA) founder Charles Hoskinson, Melker noted.
Bitcoin’s price was trading at $62,532.6, up over 1% in the last 24 hours, just above the 200-day moving average. On Stocktwits, retail sentiment around BTC remained in the ‘extremely bearish’ territory, while chatter stayed at ‘high’ levels over the past day.
