Analyst: It’s “Hard to See” Ethereum Going Fully Bullish Without Wall Street

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Despite a brutal bear market that shook out most investors, Ethereum is fundamentally stronger than ever.
David Hoffman, the CCO of RealT and a podcaster in the industry, accentuated this in the tweet below. The tweet notes that a number of Ethereum’s usage metrics and use cases are at all-time highs, despite the meager price action.

Almost everything is at ATH’s on Ethereum 📈
~Assets~Stablecoins – $8BValue in DeFi – $2.2BDAI – $186MBTC – $135MTokenized Real Estate – $2.1M
~Network~Avg Daily Network Fees – $0.7MWeekly DEX Volume – $500MDeFi Users – 250k
⟠⟠How long until ETH joins the party?⟠⟠
— DavidHoffman.eth 🏴 (@TrustlessState) July 10, 2020

With these metrics in mind, many investors have begun to argue that a gargantuan ETH rally is incoming.
But an analyst has said that it’s “hard” for him to reasonably expect Ethereum to see a big move. The reason: ETH has yet to see “real, institutional/macro fund flows.”
Why Ethereum Won’t See a Big Move to the Upside
According to the cryptocurrency analyst, while altcoins can go parabolic at current prices, Ethereum and Bitcoin are unlikely to follow.
This is purportedly due to the fact there is not yet sustainable and notable Wall Street capital flows into these assets:

“DeFi can rally without a ton of new money coming in, but BTC/ETH are at the point where they need real, institutional/macro fund flows to take it to the next level.”

He added in a later tweet that this reason is why it’s “hard” for him to see or excited for “a big ETH rally even though Crypto Twitter keeps calling it.”
Unless Ethereum sees a whole “different level of capital” inflows, ETH is unlikely to make a move with “BTC range-bound,” the analyst concluded.
Will Wall Street Money Ever Come? 
With Ethereum’s long-term performance purportedly predicated on Wall Street, it’s worth asking if that money will ever come.
From a pure product standpoint, it may seem this is the case. $2 trillion asset manager Fidelity Investments, the CME Group, and other service providers are expected to soon offer Ethereum products to Wall Street.
The issue is that existing fund managers in the space currently do not see ETH as a viable investment.
Michael Novogratz — the CEO of “crypto merchant bank” Galaxy Digital — said in a tweet earlier this year that Ethereum remains in a “proving phase.”
This comment was predicated on the fact that Ethereum is not yet the “trust level” that most developers are working with. This is important as the main advantage of ETH over BTC is its smart contract capabilities.
Novogratz’s thoughts were echoed by Jeff Dorman of Arca. He argued that since ETH is correlated with small cryptocurrencies, there’s little value in owning it.
Featured Image from Shutterstock
Price tags: ethusd, ethbtc
Charts from TradingView.com
Analyst: It’s “Hard to See” Ethereum Going Fully Bullish Without Wall Street

Source: https://bitcoinist.com/ethereum-fully-bullish-without-wall-street/?utm_source=rss&utm_medium=rss&utm_campaign=ethereum-fully-bullish-without-wall-street

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