Ethereum has been Issued a Bearish Call by Hedge Fund
The New York-based fund has been blessed with perfect timing, with ETH falling in BTC terms following the publication of its report 24 hours ago, while bitcoin has rallied strongly. Hedge fund Tetras Capital has issued a bearish call on ethereum and opined that bitcoin has more upside potential.
Single-handedly, no investment fund can commandeer the market and short a particular asset. But by issuing an unequivocally bearish call, it can capture the attention of other traders and attempt to convince them of its wisdom. Convert enough of them, and it might be sufficient to make the pessimistic prediction come true. That seems to have been the intention of Tetras Capital, who caught the headlines on Monday after publishing a “Bearish Thesis” on ethereum.
“Just as ETH benefited from irrational exuberance, it will inevitably suffer further as the market sobers up,” claims the hedge fund
Hedge Fund continued saying :
“We believe that ETH’s current price is still significantly overvalued; still significantly decoupled from the Ethereum network’s current and near-term technological state. Our research has led us to believe that the market and technology is still far too immature to justify current valuations. This nascent asset class has taken off due to speculative narratives, and we believe that the current marketplace is not sophisticated enough to properly evaluate risks or general economic concerns.”
In setting its stall firmly in the anti-ETH camp, the New York hedge fund is going against the predictions of ethereum maximalists such as Coinbase CEO, Brian Armstrong, who is firmly in Team ETH.
The hedge fund’s bearish forecast finishes:
“We believe the coming months will be extremely telling for Ethereum’s future. Network strain (from Dapp usage), competition (from alternative Dapp platforms), and regulation (towards ICOs) will test the speculative hype and price of ETH.”
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