Crypto Hedge Fund CEO Zhu Su Outlines Why ‘It’s Hard To Be Too Bearish,’ Says These Three Altcoins Are Showing Strength

Crypto hedge fund veteran Zhu Su is offering his reasons why he thinks the markets will rebound in a big way despite a recent downtrend in prices.

In a series of tweets loaded with insider jargon, the CEO and CIO of cryptocurrency hedge fund Three Arrows Capital points out several important factors that have him anything but bearish.

“It’s just hard to be too bearish when:

1) BTC [Bitcoin] and ETH [Ethereum] supply on exchanges going to fresh lows

2) solunavax [Solana, Terra Luna and Avalanche] showing majestic strength

3) largest asset allocators in world aligned with crypto thesis

4) tourists and short-term-oriented investors flushed out.”

When leading cryptocurrencies like Bitcoin and Ethereum are not readily available on exchanges, the indication is that holders are not interested in selling.

The three altcoins Zhu mentions by name have all weathered the market-wide tumult, and two are actually in the green over the past 30 days.

Terra is a public blockchain protocol that offers a suite of decentralized stablecoins. Its native token LUNA has surged 62.1% from $40.23 to $65.28 over the past month.

Smart contract platform Avalanche (AVAX) is also up during that timeframe, having risen 6% from $100.68 to $106.73.

Meanwhile, Ethereum rival Solana (SOL) is down 11.6% on the month after sinking from $195.24 to $172.76.

By comparison over the same period, BTC is down 19.8% from $56,930 to $45,700, and leading smart contract platform ETH is down 4.4% on the month from $3,998 to $3,825.

The Three Arrows Capital CEO believes that the recent shakeouts were a necessary part of the process to bring about crypto’s next supercycle.

“American [traditional finance]/macro + global retail + logwealth cryptonatives have generally capitulated the last week or so to dynastic participants.

This was the much-needed risk transfer required to properly usher in the next wave of the supercycle.”

Back in October, Zhu defined the term “logwealth” by saying,

“Preferring logarithmic over linear wealth is the main reason people make [negative expected-value] decisions such as selling too early.”

Zhu also highlights an S&P 500 chart that’s overlaid with BTC and ETH, showing his 392,100 Twitter followers how downward price action was consistent across multiple markets.

“Crypto market has used macro as an excuse to sell off, when it has actually done so for mostly unrelated reasons (overvalued alts, year-end redemption flows, tax selling, Huobi [crypto exchange] account closures, logwealthers), all of which are unironically transitory.

Prepare accordingly.”

Image
Source: Zhu Su/Twitter

Check Price Action

Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp
Check Latest News Headlines

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Sergey Nivens/Sensvector

Leave a Reply

Your email address will not be published. Required fields are marked *