Tetras Capital Founding Partner Alex Sunnarborg Doesn’t Trust The Recent Crypto Market Rally
It might come as a surprise to many, a few might even find it painful, but there is a consensus amongst industry experts that Bitcoin’s prices haven’t bottomed yet.
One of the people who hold this view is Alex Sunnarborg of Tetras Capital and he even suggests that the sooner the price finds its bottom, the better it is for the entire ecosystem.
In his recent interview with Forbes, he said:
“Calling [the bitcoin bottom] is very difficult. That’s part of the reason I’m really thankful that we’re in the position we are right now. We can hedge ourselves, remain more neutral, and not have to call that exact price or timing bottom. I’m not confident right now. Our portfolio is relatively neutral. We have cash and short positions.”
Alex is of the opinion that to get a fresh start you have to reach rock-bottom first, then we can rebuild. This is the same philosophy he uses for the crypto ecosystem. He adds:
“What would be really good for a market bottom to happen would be for every potential bad thing to happen immediately. I would love to see the SEC come down on people really hard. One of the biggest problems in this space is there are so many bad actors, and so many were related to ICOs. The SEC just has such a massive task ahead of them. One way to think about the bottom is that it happens when all the bad news gets washed out. At that point the only thing to do is go up, and you can’t really talk about any negative catalysts anymore, because they’ve all happened.”
When asked about what he is buying and holding, he replied:
“Obviously, I’m a huge proponent of bitcoin. And if the market were to turn right now, what liquid altcoin sector would we even look at? We’re very biased against anything that did an ICO because we think they’re pretty much all illegal securities offerings. Just by cutting that out, you are left with a very small handful of assets. A use case I still find interesting, because Bitcoin doesn’t have that functionality yet, are private transactions.”