A Bitcoin prediction from the CEO of the fund management firm Three Arrows Capital is going viral.
In a post on Friday, Su Zhu initially predicted that he expected Bitcoin to pull back to below $9,000.
“Reality is that markets frequently retrace one third or more in bull markets after local euphoria. BTC $8,800 and ETH $320 are perfectly healthy targets and your trading plan needs to incorporate nonzero probabilities to such levels.”
But the top cryptocurrency appears to be defying Zhu’s expectations as it continues to hold steady above support of $10,000. According to the executive, Bitcoin’s resilience is a sign that the top cryptocurrency will reach monumental heights.
“ETH $320 as a bottom made sense and played out; BTC I am actually flabbergasted by the strength shown at $10,000 and probably means $100,000 is more likely than $5,000 at this stage.”
In addition to Bitcoin, Zhu is closely monitoring the action in the decentralized finance (DeFi) space. He says there’s much to be learned from the craze and its various exit scams and scandals.
let’s learn from this madness
1) anon founders need to be put up to higher, not lower, scrutiny
2) forking out builders and creators is not creating value
3) think adversarially and do not assume that people will act against their immediate interests for the greater good https://t.co/FUYJL1TtKg
— Su Zhu (@zhusu) September 5, 2020
Zhu believes that while there’s a lot that can be improved in DeFi, the nascent sector has the potential to rise up and compete with the more established centralized finance (CeFi) markets.
“If the trend of users migrating to DeFi continues, it is possible to imagine that soon DeFi spot markets are on par with or more liquid than CeFi ones. Then margin traders may see DeFi margin trading as an increasingly viable alternative to CeFi – which in turn may compel CeFi exchanges to add DeFi liquidity into their own financial markets.
Under this world, disparate CeFi markets become spokes to connect to DeFi underlying markets and users can decide which level they ultimately prefer for interacting with liquidity.”
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