The highs for the year in the cryptocurrency market will be reached in the coming days, co-host Dennis Dick said Friday on Benzinga's YouTube show "PreMarket Prep."
Dick compared the state of the crypto market to the SPAC market a month-and-a-half ago.
What Happened: The SPAC market gained steam as an unprecedented amount of companies began going public via SPACs in late 2020 and early 2021.
Many of the SPACs traded roughly 100%-200% higher and beyond as merger announcements were made and companies provided optimistic forward-looking statements multiple years out.
The Securities and Exchange Commission then warned SPACs about publishing potentially misleading statements about future financial performance, adding that it would begin looking more closely at SPAC filings and disclosures.
Since that time, there has been a dramatic decrease in new SPAC listings and many of the existing SPACs have traded significantly lower.
"High growth is just unforgiven," the "PreMarket Prep" co-host said.
Dick sold half of his Bitcoin (CRYPTO: BTC) holdings and half of his Ethereum (CRYPTO: ETH) holdings on Thursday, he said.
While he doesn't think the story is over, Dick said he believes this weekend will be the top for crypto.
Many crypto traders have been buying up cryptocurrencies in anticipation of Elon Musk hosting "Saturday Night Live" on May 8.
Cryptocurrency is promising, but please invest with caution! https://t.co/A4kplcP8Vq— Elon Musk (@elonmusk) May 7, 2021
Crypto Price Action: Bitcoin is up 97.40% year-to-date. Ethereum is up 373.34% year-to-date.