Investor Chris Burniske Says Ethereum Could Surprise Traders Amid ‘Extreme Sentiment’ – Here’s What He Means
Crypto investor Chris Burniske says that Ethereum (ETH) could have a surprise rally this cycle if one key event takes place.
The former head of crypto at ARK Invest tells his 292,200 followers on the social media platform X that traditional finance (TradFi) may suddenly rush into Ethereum for the project’s fundamentals, sparking a massive rally.
“Don’t think ETH outperforms SOL this bull [market cycle], but extreme sentiment sets it up to surprise – could still see it outperforming BTC from here (call me a dreamer). It’s less liquid than BTC, and once TradFi groks it’s a ‘growth asset with a healthy dividend,’ things could get….”
However, the investor warns that on the flip side, Ethereum may remain relatively unpopular for a while.
“The counter to this is last cycle was painful for BTC, as an excess of arrogance in the ’18/19 bear [market] led it to fall out of touch with the market in ’21 (it was called ‘boomer coin’), later leading to a renaissance. Could argue that this cycle is ETH’s turn to soul search.”
He also predicts that newly launched spot Ethereum exchange-traded funds (ETFs) are likely to see a similar strong trend of outflows as the spot BTC ETFs, which launched in January.
“Don’t forget BTC dipped for a short period after its ETFs launched as selling out of GBTC [Grayscale Bitcoin Trust] was immense. At the moment, it looks like ETH is following a similar pattern with ETHE [Grayscale Ethereum Trust] exits, before sustained buying flows into these ETFs likely take over.”
Ethereum is trading for $3,280 at time of writing, up more than 1% in the last 24 hours.
Generated Image: Midjourney