Three Arrows Co-Founder Su Zhu Admits His Bitcoin Supercycle Price Thesis Was Regrettably Wrong

Abstract:

• Su Zhu has admitted through Twitter that his Bitcoin supercycle thesis ‘was regrettably flawed.’
• Mr. Zhu’s Bitcoin supercycle thesis had forecasted that BTC might attain $2.5 million if it took a big portion of Gold’s market share.

The co-founder of Three Arrows Capital, Su Zhu, has admitted through Twitter that his Bitcoin supercycle worth thesis was regrettably flawed. Within the tweet that may be discovered under, Mr. Zhu went on to precise optimism that the crypto business will nonetheless ‘thrive and alter the world each day.’

Supercycle worth thesis was regrettably flawed, however crypto will nonetheless thrive and alter the world each day

— Zhu Su 🔺 (@zhusu) May 27, 2022

Su Zhu’s Bitcoin Supercycle Thesis Defined

Su Zhu’s Bitcoin supercycle thesis dates again to a February 2021 interview on the UpOnly podcast the place he recommended that BTC might hit $2.5 million if it had been profitable in capturing a good portion of Gold’s market share. He defined his $2.5 million Bitcoin goal as follows:

I imply, I believe there’s an argument that gold itself could be very undervalued. If it was the dominant retailer of worth trigger this factor was at like $1,700 years in the past… and let’s say gold ought to have 5X’d if there wasn’t Bitcoin, then actually we’re a $50 trillion market cap.

So you then’re already midway there to $100 trillion and that may get you to $2.5 million per BTC and I believe that that’s undoubtedly attainable.

Bitcoin Has Dropped by Virtually 50% Since His Interview on UpOnly.

On the time of the interview again in February 2021, Bitcoin was buying and selling at about $50,000 and would go on to submit a brand new all-time excessive of $69k in November of the identical yr. Nevertheless, the King of Crypto has since entered a bear market that has seen Bitcoin hit a neighborhood low of $26,700 earlier this month because of the crypto market panic attributable to UST’s depegging.

This, in flip, interprets to an nearly 50% downside of Bitocin since Su Zhu appeared on the UpOnly podcast and defined his Bitcoin supercycle thesis.

On the time of writing, Bitcoin is buying and selling at $28,400 because the US Federal Reserve begins the method of Quantitative Tightening starting subsequent week, June 1st. In consequence, analysts and crypto merchants stay bearish on the short-term way forward for Bitcoin because it might drop to $22k and even $20k.