Investment Firm Tetras Capital has published a report urging investors to bet on BTC to the detriment of ETH. The publication was made the day before the Bitcoin hit.
The 42-page document aimed to convince, based on a detailed analysis, that Bitcoin's potential is much higher. A and got unexpected advertising after ETH dropped in relation to BTC in the coming days.
In practice, the type of report published by Tetras Capital is an attempt to profit from the "short" process. This involves betting on falling the price of a digital asset.
In fact, because Tetras has insufficient funds to influence the market as a whole, their analysis aims to persuade other investors to follow their advice, thus achieving the desired results.
"ETH benefited from an irrational enthusiasm at launch, it is inevitable that its value will decrease with the maturing of the market"
says the report.
"We believe that the current price of ETH is still significantly overvalued, decoupled from the current and future technological state of the Ethereum network. Our research has led us to believe that the market and technology are still too immature to justify current assessments. This class of emerging assets has taken off because of speculative narratives, and we believe that the current market is not sophisticated enough to adequately assess general economic hazards or concerns. "
Unfortunately, the recent situation in the Ethereum network partly confirms the position of Tetras Capital. A series of incidents generated congestion and caused $ 15 million in gas (transaction fees).
However
Leading opinion leaders are firmly pro-ETH, such as Brian Armstrong, CEO of Coinbase. He believes that the technology behind Ethereum has significant potential.
Regardless of the positions adopted, both Bitcoin and ETH have benefited from significant advances in recent days. Bitcoin reached $ 7400 and ETH exceeded $ 500.
It remains to be seen, however, whether these increases can be sustained in the long run.