A closely watched crypto analyst thinks market participants are too pessimistic about the likelihood that regulators will greenlight a spot Ethereum (ETH) exchange-traded fund (ETF).
Pseudonymous analyst Altcoin Psycho tells his 501,800 followers on the social media platform X indicate that people are not optimistic enough about ETH at the moment.
“Markets underestimate the chances of an ETH ETF by 100%.
It also underestimates the price impact it will have.
Buying ETH under $3,000 pre-ETF will ultimately be an obvious trade afterwards. Just as it is now clear that you should have bought Bitcoin pre-ETF.”
Data from the Ethereum-based prediction market platform Polymarket shows that only 13% of traders believe an ETH ETF will be approved by the end of the month.
Looking at the broader digital asset market, Altcoin Psycho believes market participants will eventually do so turn their capital to blue-chip crypto projects at the expense of memecoins.
“At some point, all this scattered attention will shrink via a flight to quality, which also means a sell-off of memecoins. I don’t think the cycle top is in, but I think the memecoin top is not far away. Memecoins are a gateway drug and not the end game, study previous cycles if you disagree.”
As for the emerging artificial intelligence (AI) sector, the analyst says say that while many are calling for the AI bubble to burst, he believes it is still in its early stages and poised to become one of the greatest speculative manias ever.
“Most say the AI bubble will burst soon, I’m contrarian and say the bubble is just beginning.
It’s my highest belief since I said SOL at $15 was a must buy…
99% of AI startups shall failure. When this happens, naysayers will prematurely claim victory. But once the dust settles, the remaining 1% will be so valuable that they alone will carry the bubble further than any other bubble we have ever seen.”
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Generated image: DALLE3