Bitcoin vs. Ethereum: Which one has more upside potential? Hedge fund firm provides opinion
A New York-based hedge fund firm thinks that Bitcoin has more upside potential in comparison to Ethereum. The second largest cryptocurrency according to market capital has been given a thumbs down by Tetras Capital. The firm’s opinions seem to have been aired at the perfect time because ETH prices have dropped in BTC terms. Bitcoin’s price has rallied strongly since the firm published its report 24 hours ago.
The Ethereum versus Bitcoin battle has been going on for a long time. Yesterday it was reported that television personality Kevin O’Leary believed that Ethereum would beat Bitcoin and become the number one crypto. Supporters of each cryptocurrency often predict the fall of the rival coin, but this time it’s different. While the market cannot be singlehandedly commandeered by any investment fund, they are influential.
So even if they can’t short a particular asset, they can wield their influence on traders and investors. This unequivocal bearish call on Ethereum by Tetras Capital can spread FUD among investors. The hedge fund seems to be trying to convince investors of their wisdom and convert them. Thus, leading to their pessimistic call on Ethereum actually coming true.
See Also: Ethereum co-founder Vitalik Buterin comes up with seven difficult questions for the cryptoverse
The hedge fund firm which published their article “Bearish Thesis” on Monday. The Medium post explains their reasons for going short on the second largest cryptocurrency. The article also provides a link to a detailed, 42-page report stating its case. Tetras Capital’s proclamation made headlines immediately and grabbed attention and their bearish call is actually proving right.
While the top 100 coins have rallied since yesterday, Ethereum price has dropped in BTC terms. Ethereum was trading at 0.072 BTC, but after the release of the article, the price dropped to 0.0684 BTC. The hedge fund said,
“Just as ETH benefited from irrational exuberance, it will inevitably suffer further as the market sobers up.”
It seems Tetras capital has set up camp in the anti-Ethereum side. They further added,
“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.”
The hedge fund concludes its bearish outlook for the cryptocurrency by saying,
“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.”
While Ethereum has faced problems recently, the Blockchain and cryptocurrency have its fair share of staunch fans. Vitalik Buterin also acknowledged the transaction spam on the ETH network and estimated the cost was equivalent to 75 Lamborghinis. Along with Kevin O’Leary, CEO of Coinbase, Brian Armstrong is also a staunch ETH fan. According to Bitcoin.com, it seems that Tetras Capital is trying the time-tested method of gaining publicity by shorting Ethereum. They could increase their ROI and move their rank up significantly by putting the bulk of its assets into BTC. Or, they stand to lose everything if ETH manages to win the battle!
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