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.<\/p>\n
In a series of tweets loaded with insider jargon, the CEO and CIO of cryptocurrency hedge fund Three Arrows Capital points out<\/a> several important factors that have him anything but bearish.<\/p>\n \u201cIt\u2019s just hard to be too bearish when:<\/em><\/p>\n 1) BTC [Bitcoin] and ETH [Ethereum] supply on exchanges going to fresh lows<\/em><\/p>\n 2) solunavax [Solana, Terra Luna and Avalanche] showing majestic strength<\/em><\/p>\n 3) largest asset allocators in world aligned with crypto thesis<\/em><\/p>\n 4) tourists and short-term-oriented investors flushed out.\u201d<\/em><\/p>\n When leading cryptocurrencies like Bitcoin and Ethereum are not readily available on exchanges, the indication is that holders are not interested in selling.<\/p>\n 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.<\/p>\n Terra is a public blockchain protocol that offers a suite of decentralized stablecoins. Its native token LUNA<\/a> has surged 62.1% from $40.23 to $65.28 over the past month.<\/p>\n Smart contract platform Avalanche<\/a> (AVAX) is also up during that timeframe, having risen 6% from $100.68 to $106.73.<\/p>\n Meanwhile, Ethereum<\/a> rival Solana<\/a> (SOL) is down 11.6% on the month after sinking from $195.24 to $172.76.<\/p>\n By comparison over the same period, BTC<\/a> is down 19.8% from $56,930 to $45,700, and leading smart contract platform ETH<\/a> is down 4.4% on the month from $3,998 to $3,825.<\/p>\n The Three Arrows Capital CEO believes<\/a> that the recent shakeouts were a necessary part of the process to bring about crypto\u2019s next supercycle.<\/p>\n \u201cAmerican [traditional finance]\/macro + global retail + logwealth cryptonatives have generally capitulated the last week or so to dynastic participants.<\/em><\/p>\n This was the much-needed risk transfer required to properly usher in the next wave of the supercycle.\u201d<\/em><\/p>\n Back in October, Zhu defined<\/a> the term \u201clogwealth\u201d by saying,<\/p>\n \u201cPreferring logarithmic over linear wealth is the main reason people make [negative expected-value] decisions such as selling too early.\u201d<\/em><\/p>\n Zhu also highlights an S&P 500 chart that\u2019s overlaid with BTC and ETH, showing<\/a> his 392,100 Twitter followers how downward price action was consistent across multiple markets.<\/p>\n \u201cCrypto 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.<\/em><\/p>\n Prepare accordingly.\u201d<\/em><\/p>\n Check Price Action<\/a><\/span><\/em>
\n
\nDon’t Miss a Beat \u2013 Subscribe<\/a> to get crypto email alerts delivered directly to your inbox <\/span><\/em>
\n
\nFollow us on Twitter<\/a>, Facebook<\/a> and Telegram<\/a><\/span><\/em>
\n
\nSurf The Daily Hodl Mix<\/a><\/span><\/em>
\n<\/p>\n
![\"Image\"](\"https:\/\/pbs.twimg.com\/media\/FGsi6uYVQAM0oiM?format=jpg&name=large\")
![](\"https:\/\/i0.wp.com\/dailyhodl.com\/wp-content\/uploads\/2018\/06\/Get-Alerts-728x90.png?resize=800%2C99&ssl=1\")
<\/p>\n