Pseudonymous crypto trader Capo of Crypto recently identified an intriguing correlation about the appearance of celebrities in cryptocurrency markets and their connection to cycle tops.
Caitlyn Jenner and Soulja Boy are among the latest famous names attached to digital assets.
What Happened: According to Capo, historical trends suggest that when celebrities start promoting crypto projects, the market typically sees a final leg up before hitting a local top.
He referenced notable instances from the past, stating, “In 2017, several celebrities started promoting crypto projects, especially around September.
After this, we saw a strong leg up before the bull market top in December 2017 and the following bear market in 2018.”
He noted a similar pattern during 2021, with first instances in February and later in October-November.
“Both times, there was a final leg up followed by a significant correction,” Capo observed.
| Cryptocurrency | Date | Price on date | Price after 30 days | Price after 90 days | Price after 180 days |
| Bitcoin BTC/USD | September 2017 | $3,750 | $5,600 | $16,500 | $8,200 |
| Bitcoin BTC/USD | February 2021 | $45,000 | $57,000 | $60,000 | $47,000 |
| Bitcoin BTC/USD | October 2021 | $61,000 | $57,000 | $41,000 | $46,000 |
| Bitcoin BTC/USD | November 2021 | $57,000 | $49,000 | $39,000 | $41,000 |
Read Also: Ethereum Could Hit $10K By Year-End, Says Analyst Signaling ‘Significant Bullish Move’
Why It Matters: Capo’s analysis highlights a potential short-term trading strategy for crypto investors. If the pattern he identified holds, celebrity endorsements could signal an impending local market top, providing an opportunity for traders to capitalize on the final price surge before a correction.
“Based on this we can conclude that when celebrities start promoting cryptocurrencies, the market usually experiences a final leg up before reaching a local top,” Capo summarized.
The trader cautioned that the sample size is small, which limits the predictive certainty of this pattern. Investors might observe current celebrity activity as a potentially useful, albeit not definitive, indicator for short-term market movements.
What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Bitcoin Spot ETFs See $48M Inflow As Ethereum Spot ETF Trading Draws Nearer
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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