Last week, Su Zhu, Co-Founder, CIO, and CEO of Singapore-based crypto-focused hedge fund Three Arrows Capital talked about the past, present, and future of the crypto market.
The former Deutsche Bank trader’s comments were made during an interview with pseudo-anonymous crypto researcher “Hasu” for an episode of the “Uncommon Core” podcast that was released on June 17.
When asked by Hasu if the crypto bull run is over, Zhu replied:
“I think a lot of the reason why people are asking that now is just recency bias, right, where after markets have fallen off the cliff a bit and momentum is kind of stalling on some coins, people are wondering, is the whole thesis dead, is it just all the froth, and I think people they tend to have trouble zooming out I think because if you look year on year at the total value locked in protocols… the activity in addresses, the daily volumes, we’re at monumental figures.
“Just across a number of metrics, I think that there’s very healthy signs of adoption, and very healthy signs of continued momentum. I think that, zooming out, some of these coins went up almost every month for nine months straight. So I think the pullback, while it was very brutal, it’s not necessarily the sign that the whole market’s over, and I think that it does give people that have been watching this go up for several months, it does give them an entry point, where up to now it didn’t really have that entry point available.
“So I think that the bull market is definitely not over, and I think that this kind of allows for institutional players to come into the market and get involved… You saw just today Goldman — they mission in their report that they’re going to support Ether options and Ether futures and that a lot of their clients have been saying that this pullback’s been a good chance to finally get into Either because up to now they just had no chance to get in for the whole run.“
Hasu also Zhu if he was surprised by the market’s 40-50% crash in May in a span of just a couple of weeks.
“Yeah, I think there is a lot of news that came out around then that was the bearish, especially out of China, regarding mining, but then also in the US with Elon’s tweets about Tesla and Bitcoin’s energy usage. So, I think that those are not the proximate causes necessarily, but they’re some of them, and I do think that the market took that as a Schelling point to start taking profits.
“I think that the combination of that plus the fact that people who had been buying throughout kind of said ‘OK, if I just wait, then I can get it a much lower price, so I will wait’… If you look at the way that markets have bounced too, you can see those buyers are still there — it’s just a matter of what price they’re going to get. So, during the beginning and the mid part of this run, they kept having to buy it at higher and higher prices, and this time they managed to get some at lower prices than before. So, I think it’s just that simple. Bottom line, there’s still a tremendous amount of buy demand…
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