Crypto Bottom Is Far From Over Says Alex Sunnarborg

Ethereum Momentum Slow

Crypto Investor Who Shorted Ethereum at $700: Bottom is Far From Over, Here’s Why …

It has been challenging not to get hopes up when crypto markets surge by over 20% in a couple of weeks. What should be remembered though is that the asset class is still in the midst of a bearishness that has lasted for over a year.

One hedge fund partner, who has been known for shorting, still believes there is even more to come before markets hit the bottom.

Ethereum Momentum Slow, Devs Jumping Ship

Alex Sunnarborg, founding partner of Tetras Capital, a New York City based cryptocurrency hedge fund, talked to Forbes just recently about the firm’s investment techniques and where he sees markets going next.

The company is approximated to have $30 million in assets under management. It shorted Ethereum in May when it was trading at around $700, which Sunnarborg confesses was the company’s most significant win for 2018.

Total market cap – 6 months

When asked where the bottom is for Ether he replied that fundamentals do not have that much impact because the assets trade a lot relative to each other. Generally, Ethereum will follow what Bitcoin does, a pattern which we have all seen play out over the previous couple of years.

He added that the ConsenSys downsizing news was bad for ETH as it is an essential piece of the Ethereum ecosystem. “There’s this massive detach in between just how much money is still bound in these projects and just how much people really use them,” he added.

Ethereum dApps have had minimal uptake and competing platforms EOS and Tron are now getting the lion’s share of users. This will cause developers to leap ship to other platforms which would trigger a ‘drop in momentum and steam’.

Not Confident on Bitcoin Yet

When asked the crucial question on whether Bitcoin has bottomed yet Sunnarborg replied;

“I don’t think so, and I think calling that is very difficult. That’s part of the reason I’m really thankful that we’re in the position we are right now. We can hedge ourselves, remain more neutral and not have to call that exact price or timing bottom. I’m not confident right now.”

The interviewer inquired about what the firm was bullish and supportive of. Aside from being a Bitcoin advocate, he included that Mimblewimble and Smile are interesting along with Zcash and Monero.

Certainly, not a fan of EOS and alluding to its centralization he added; “The one-year long, $4 billion-dollar ICO seems a little excessive to me. The entire governance system, with 21 block producers that can essentially make, vote, or deny whatever, is a strange principle to me.”

Back to the bottoms, he stated that bad news is required to cause the landslide and this is most likely to come from the United States SEC. As soon as all the bad actors and dodgy ICOs get washed out, the volume and price manipulation is quashed, and a couple of big name products get introduced then the only way is up.

Some noted crypto experts are also of the viewpoint that this rally won’t last too long.

The $25 billion rally has actually been a delight bymany, however, to put things into perspective, markets are still half of what they were on August 1 when the market cap was $270 billion and falling.

Image from Shutterstock

The post Crypto Investor Who Shorted Ethereum at $700: Bottom is Far From Over, Here’s Why appeared first on NewsBTC.

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