Manager of hedge fund, short on ether: "Crypto hasn't bottomed yet"

20 Feb, 2019 | Updated: 20 Feb, 2019
by Alberto Arnaldo
Trading
Manager of hedge fund, short on ether: Crypto hasn't bottomed yet

Despite the currently ongoing bull run bringing Bitcoin prices up above $4,000, there are still some voices calling for lower lows. That is the case of Alex Sunnarborg, partner of Tetras Capital.

Sunnarborg was recently interviewed by Forbes. According to his replies, the fund he represents shorted ether back in May 2018, when prices were ranging between $500 and $600.

Although he did not want to comment on whether the position is still open, the managing partner mentioned that the close correlation between Ethereum and Bitcoin leads him to think that the upcoming bottoming of the second will also pull lower the prices of the first. Another negative point affecting Ethereum are the layoffs in ConsenSys and the general lack of compromise or interest of both dapp developers and users, as he stated.

One further interesting insight from the interview regards the investment strategy currently in play by the fund he represents. First, Tetras would not invest in project such as Ethereum Classic due to their exposure to 51% attacks, caused by the possibility of rewriting the blockchain for non-prohibitive amounts of computing power.

Second, Sunarborg stated that his fund engaged in altcoin trading during 2017 as they believe that returns are larger than with Bitcoin during a bull market. However, in the currently opposite situation he admits that “before we short Bitcoin, we look at something with a higher beta”.

Finally, it should also be noted that the managing partner assured that their investment strategy does not include any projects coming out of initial coin offerings: "We’re very biased against anything that did an ICO, because we think they’re pretty much all illegal securities offerings."

Read more: 43% of millennial traders have more faith in crypto than the stock marketNext bull run? Here's what the community is saying about this crypto rally

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definitely crypto has not bottomed yet. there are levels like $2000, $1000 and further. however I am sure BTC will finally be priced at something like $500
20 Feb, 2019 - 19:16
i believe that recent up movement was just the beginning of the recovery. i believe that BTC price would be at least at the $10000 level
21 Feb, 2019 - 12:51

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