Peter Brandt warns of Memecoin crash as Bitcoin hits $99,000.

Peter Brandt, a veteran trader with over 50 years of market experience, issued a stern warning About the future of meme coins. He believes these speculative assets could disappear completely during the next market crash. However, despite the negativity and distrust in the meme sector, meme coins rose 500%, reaching a market capitalization of a whopping $120 billion in December 2024.

While Bitcoin is hovering around $99,000 after its tragic collapse, the market is still coming to its senses. The path to meme coins and altcoins is indeed risky. Here’s Brandt spilling the beans on the celebrity-generated meme hype.

Memes are a highly speculative asset because while they instantly boost support from celebrities and political leaders, they can also decline rapidly as they compete with larger assets such as Bitcoin. However, it is a hot option for many large players to switch their investment portfolios and make money by buying more Bitcoin.

Trump’s victory meme is expected to push the value of AI and stablecoins higher than expected. As the price of Bitcoin rises, smaller traders are stockpiling meme coins or other low-denomination coins at low prices to manage and reduce their risk appetite.

Is this best? What happens next?

Brandt highlights the dangers of investors chasing trends with massive leverage in the hope of making a quick fortune. Bitcoin’s rise from $0.07 in 2010 to its current level of $100,000 is legendary, but he warned that such explosive returns will never happen again. His main interests are altcoins and meme coins, which he says are much more risky.

The biggest drawback of memecoins is their reliance on celebrities and the hype created by market analysts. According to Benjamin Cowen, new projects launched by large corporations, many of which aim to trick unsuspecting investors into buying Bitcoin with celebrity tags, are more likely to suffer losses if they back out of the project.

• Also read:
• DeFis and NFTs Are Starting to Swell: Here Are the Best Altcoins to Consider in January 2025.
• ,

Cryptocurrency crash scenario

If the market crashes, Brandt predicts Bitcoin could lose 50% of its value, altcoins could plummet 90%, and meme coins could disappear altogether. He calls this scenario a natural consequence of speculative markets where overleveraged traders are caught off guard during corrections.

Despite his caution, Brandt remained optimistic about Bitcoin as a long-term investment, calling it the only digital asset with a proven track record. Overall, Bitcoin remains a good investment due to its long-term bullish outlook and strong institutional support. He even predicted that Bitcoin would reach $327,000 by mid-2025. However, his outlook for the broader cryptocurrency market is much more cautious, urging investors to take a cautious approach, especially when it comes to high-risk assets such as meme coins.