Peter Brandt warned about the Memecoin crash when Bitcoin reached $99,000

Veteran trader Peter Brandt, who has over 50 years of market experience, has given a big warning about the future of meme coins. He believes that these speculative assets may experience a complete washout in the next market downturn. However, despite the negativity and disbelief in the meme sector, meme coins have increased by 500% by 2024, with a staggering $120 billion market cap in December.

After the tragic crash, the market is still regaining its consciousness as Bitcoin hovers around $99k on its way to the mimi-coins. Here's Brandt spilling the beans on celebrity-created meme hype.

Memes are highly speculative assets when they flow instantly with the support of celebrities and political leaders, but when compared to larger assets like Bitcoin, they can fall sharply. However, it is a hot choice for many big players to divert their investment portfolios and take profits to buy more bitcoins.

Having said that, with the Trump winning meme, AI and stablecoins will go beyond expectations. As the price of Bitcoin continues to rise, small traders are hoarding meme coins or other low-value coins at low prices to manage and reduce their risk appetite.

Is this for the best? What comes next?

Brandt highlights the dangers of investors aggressively chasing trends in hopes of quick riches. In the year While Bitcoin's rise from $0.07 to $100,000 in 2010 was legendary, he cautioned that such an explosive return could never happen again. His main focus is on altcoins and meme coins, which he says are more risky.

The biggest drawback of memecoins is their dependence on celebrities and the hype created by market analysts. According to Benjamin Cowen, new projects launched by many big players just to fool naive investors who buy Bitcoin with celebrity accounts are prone to losses if they withdraw from the project.

Also read: DeFis and NFTs Take Off: Here Are the Top Altcoins to Consider This January 2025

The Crypto Crash Scenario

If the market crashes, Brandt predicts that bitcoin could lose 50% of its value, altcoins could drop 90%, and meme coins could disappear entirely. He calls this situation a natural consequence of speculative markets when excessive traders adjust.

While cautious, Brandt remains 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 predicted that Bitcoin could reach $327k by the middle of 2025. However, the outlook for the broader crypto market is more cautious, urging investors to tread carefully, especially with high-risk assets like meme coins.