Mechanism Capital: More Than 98% of Torrent Coins Have Topped Out This Cycle

Andrew Kang, co-founder and partner at Mechanism Capital, said in a post on X that the most common mistake in the crypto market is buying too early when the trend turns from up to down. Corrections after large market structure collapses tend to be deeper and longer than expected. Instead of buying when BTC is down 10% from its highs, buy for the next cycle when there is a general liquidation of the market, a majority exit, and questions about whether cryptocurrencies are extinct forever. Additionally he believes that more than 98% of torrents have already peaked in this cycle, with only a few likely to hit new highs in Q4 2024 or Q1 2025. It's mainly a handful of meme coins that are likely to make new highs, but choose carefully. Kang also said that Bitcoin is in a transition to a hypercyclical asset, combining the characteristics of a previous cycle with those of a mature macro asset.