“When price goes down, it feels like it will never go up again. When price goes up, it feels like it will never go down again. The market’s job is to force participation. When it goes down, it forces you to want to sell, when price goes up it forces you to want to buy.”
Pentoshi is a moniker used by a pseudonymous crypto market strategist who primarily uses Twitter to post market prediction updates. He has amassed over 600,000 followers on Twitter in the past couple of years due to his sometimes accurate market predictions and general knowledge of the economy.
Pentoshi describes himself as a crypto enthusiast, not a certified financial adviser. His accurate prediction regarding the end of the 2021 bullish market season earned him significant recognition on Crypto Twitter.
Pentoshi started off 2022 with a bearish forecast but changed his viewpoint in March. The analyst indicated that a Bitcoin rally was about to occur and would be catalyzed by several key factors. One of them was the Terra project’s intention to buy about $1 billion worth of Bitcoin. This was after Do Kwon, founder and CEO of Terraform Labs, announced plans for his company to become one of the largest corporate Bitcoin holders.
Pentoshi also mentioned El Salvador’s pledge to buy $500 million worth of the prime digital currency through bonds as another reason why a Bitcoin price breakout was imminent. The prediction was scuttled after TerraUSD depegged from its dollar value, forcing Terraform Labs to sell about $2.4 billion worth of BTC in an attempt to defend its algorithmic stablecoin. The sell-off had a negative impact on the Bitcoin market due to the sudden influx of coins.
On March 3, 2022, just before the first major crypto market decline, he warned crypto users about an impending market downturn: “You can already see other markets starting to show massive cracks in the foundation, Hong Kong has erased 100% of the post covid gains, and it appears European markets are next. I’m not sure how anyone can look at the past, and be bullish on the present.” The prediction came to pass on March 29 when the crypto market fell sharply, which wiped out close to $1 trillion from the cryptocurrency market over the next two months.
Toward the end of 2022, the crypto analyst predicted that a Bitcoin bottom was near. He, at the same time, cautioned that a Bitcoin bottom would not necessarily transition into a new bullish uptrend. He justified his prediction by pointing out that the factors that influenced Bitcoin’s previous bull run were notably missing. Pentoshi further predicted that BTC would not experience any new lows until the first quarter of 2023. He anticipated that Bitcoin would hit a bottom of $16,900 in the first quarter of 2023.
Pentoshi is likely to continue providing crypto market predictions to his followers in 2023. He probably won’t stop offering risk management-related trading tips either. In January 2023, he asked traders to be cautious when investing during times of market volatility and learn from past trading mistakes. He’s also likely to continue bringing to light some of the peculiar happenings in the crypto industry, as he has done in the past.
In January, he alerted his followers about a new crypto exchange project dubbed GTX, which had the backing of Three Arrows Capital co-founders Kyle Davies and Su Zhu. This was amid news that they were included in an investor pitch as founders of the proposed crypto marketplace. The two founded 3AC, a linchpin crypto hedge fund that at one point managed over $10 billion in investor assets. The company, however, filed for bankruptcy in July 2022 following allegations of financial mismanagement.
Davies and Zhu have since been accused of being uncooperative in assisting advisers involved in the 3AC liquidation process after they went underground. The co-founders’ whereabouts are still unknown to date. Pentoshi is likely to continue posting such notable updates in 2023.
