- Deutscher warned that high-quality tokens can become poor buys if prices rise too far without better fundamentals.
- Howard Marks emphasized that overpaying for any asset, even good ones, leads to poor investment outcomes.
- Both experts stressed that true value depends on price alignment with fundamentals, not hype or brand
On June 17, crypto analyst Miles Deutscher posted a warning to investors on X, emphasizing that rising prices—even for high-quality assets—can reduce investment appeal if fundamentals stay the same.
Miles Deutscher Warns: Even Good Crypto Assets Can Become Bad Buys at High Prices
Deutscher wrote that an asset like $HYPE might offer strong value at $10 or even $30, but as its price climbs to $40 or $50 without a change in its underlying fundamentals, it becomes a weaker buy. “There will come a point where it becomes a ‘bad’ buy, despite being a good asset,” he said.
He also reversed the logic, explaining that low prices can make even poor-quality tokens look attractive.
“There are some absolute trash, scam, vapourware projects which, at the right price, represent brilliant buys,”
he added.
In a follow-up post, Deutscher stressed that “price and fundamentals aren’t always aligned.” He cited a quote from Howard Marks:
“Good assets become bad investments at the wrong price, and bad assets become good investments at the right price.”
Voice from Value Investing: Howard Marks Reinforces Core Lesson
Howard Marks, co‑founder of Oaktree Capital, echoed Deutscher’s warning in a recent memo, stating:
“There’s no asset so good that it can’t become overpriced and thus dangerous, and there are few assets so bad that they can’t get cheap enough to be a bargain.”
He emphasized that price, not just quality, determines if an investment is sound.
In January’s “bubble.com” memo, Marks recalled the Nifty Fifty crash and cautioned that “there’s no price too high” mentality marks bubble territory.
At the Qatar Economic Forum, Marks again advised vigilance as U.S. markets remain elevated, urging investors to focus on valuation discipline over market excitement.
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