Hedge fund Tetras Capital has issued a bearish call on ethereum and opined that bitcoin has more upside potential. 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.
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Tetras Capital Gives Ethereum the Thumbs Down
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.
A blog post outlining the fund’s reasons for going short on ETH linked to a comprehensive 42-page report that detailed its case in forensic detail. Tetras Capital was hoping for headlines and its wish was quickly granted. Not only has the hedge fund’s proclamation gained traction, but so far, its call appears to be bearing fruit. Every single crypto asset in the top 100 has rallied in the last 24 hours, with bitcoin predictably leading the charge. Ethereum has slipped in BTC terms, however, dropping from around 0.072 at the time of Tetras Capital’s report to 0.0684 BTC at the time of publication.
Long on Bitcoin, Short on Ethereum
“Just as ETH benefited from irrational exuberance, it will inevitably suffer further as the market sobers up,” claims the hedge fund, before continuing:
We believe that ETH’s current price is still significantly overvalued; still significantly decoupled
