Analyst Says Markets ‘100% Underestimating’ Odds of Ethereum ETF Approval, Warns Top for Memecoins in Sight
A closely followed crypto analyst thinks that market participants are too pessimistic about the odds that regulators will green-light a spot Ethereum (ETH) exchange-traded fund (ETF).
Pseudonymous analyst Altcoin Psycho tells his 501,800 followers on the social media platform X that people are not bullish enough on ETH right now.
“Markets 100% underestimating odds of an ETH ETF.
It’s also underestimating the price impact it’ll have.
Buying ETH under $3,000 pre-ETF will eventually be an obvious hindsight trade. Just like how it’s now obvious you should have bought Bitcoin pre-ETF.”
Data from the Ethereum-based prediction market platform Polymarket shows that only 13% of traders believe that an ETH ETF will be approved by the end of the month.
Looking at the broader digital asset market, Altcoin Psycho thinks that market participants will eventually rotate their capital to blue-chip crypto projects at the expense of memecoins.
“At some point all this scattered attention will narrow via a flight to quality, which also means a memecoin sell-off. I don’t think the cycle top is in but I think the memecoin top is not far away. Memecoins are a gateway drug not the end game, study past cycles if you disagree.”
As for the emerging artificial intelligence (AI) sector, the analyst says that while many are calling for the AI bubble to burst, he thinks it’s still in its earlier stages and set to become one of the biggest speculative manias ever seen.
“Most say the AI bubble will soon burst, I’ll be the contrarian and say the bubble’s just starting.
It’s my highest conviction take since saying SOL at $15 was a must-buy…
99% of AI startups will fail. When this happens, naysayers will prematurely claim victory. But once the dust settles, the surviving 1% will be so valuable that they’ll alone carry the bubble beyond any other bubble we’ve seen.”
Generated Image: DALLE3
The post Analyst Says Markets ‘100% Underestimating’ Odds of Ethereum ETF Approval, Warns Top for Memecoins in Sight appeared first on Crypto News Australia.
Filed under: Bitcoin - @ May 19, 2024 3:22 pm