Alex Sunnaborg a hedge fund manager of Tetras Capital insists that leading digital currency Bitcoin (BTC) is yet to bottom out. The Tetras Capital hedge fund manager is also of the view that the crypto sector needs a comprehensive revamp to remove the ‘bad actors’ and promote mainstream investor confidence in the market.
Bitcoin’s (BTC) Price Remains a Major Topic Going Forward
Since the digital asset fell from an all-time high two years ago (from $19,700, to $6,000 in early 2018), declaring a long-term bottom for the Bitcoin (BTC) price remains a prominent topic for discussion. For Sunnarborg, Bitcoin (BTC) is not really there yet.
While speaking to Forbes Tetras Capital’s managing partner Jeff Kauflin, commented on the topic of whether Bitcoin (BTC) bottoming out or not, saying:
“I do not believe that it is there yet. I think calling this position is a difficult prerogative. One way to consider a bottom is that it usually happens when the bad news is washed out. At this point the main thing to do is move up, and you can not really speak on any negative catalysts for now because they have all happened already.”
Sunnarborg: Market Needs Some Level of Clarity Before a Long Term Bottom Can be Established
According to Sunnarborg, the Bitcoin price is very close to forming a long-term bottom. Yet, the hedge fund manager believes that the market requires some level of clarity, either way, it will be to accelerate the bottoming process.
During the interview, Sunnarborg went on to identify the VanEck/SolidX BTC ETF proposal as an offering that could have accelerated Bitcoin’s bottoming if it had actually been rejected. Sunnarborg, insists that there are many variables in play including potential launches (for Fidelity Investments and Bakkt) and ETF approvals, that could facilitate an actual Bitcoin bottoming.
In late January, Fidelity Investments revealed that its custody platform is going to be launched in March this year. Bakkt is still waiting for regulatory approval from the CFTC (Commodity Futures Trading Commission) although the company promised that it will go ahead with the necessary preparations pending the CFTC’s approval.
Crypto Sector Needs a Revamp
Speaking on the crypto industry in general, Sunnaborg claimed that the market needs a cleanup to be more appealing to the mainstream investors and the dire need for a more trusted trading data.
Recently, Nasdaq went into a partnership with Brave New Coin (BNC) in a collaboration to include BTC and ETH price indices developed by Brave New Coin in the former’s indices or trading index catalog. Sunnarborg is of the opinion that crypto data should become more trustworthy so that that it will be easier to combat issues of price manipulation.
On the topic of an industry-wide revamp, Sunnaborg added:
“I love to see the SEC crackdown on people hard. One of the most common problems in the space is that there are many bad actors particularly in relation to ICOs. The SEC has a massive task ahead.”
Finally the hedge fund manager spoke on the failure of many projects particularly protocols launched via ICOs. Sunnaborg, believes that projects that represent the ‘Bitcoin ethos’ of making a genesis block and mining instead of introducing phony tokens (illegal security offerings) offers the potential to add to the value-based digital economy we currently live in.