Why Bitcoin, Ethereum 'Bottom Is In' And 'New Highs Are Imminent,' According To Veteran Trader

Zinger Key Points
  • Flood Capital believes Bitcoin’s bottom is in and new all-time highs are imminent for the crypto king.
  • He reveals his long trade on Ethereum and Toncoin and believes altcoins to do well when BTC, ETH break all-time highs

Crypto trader Flood Capital predicts new all-time highs for Bitcoin BTC/USD and Ethereum ETH/USD, citing market dynamics, ETF impacts and improving sentiment.

What Happened: In a detailed thread, Flood Capital made the case that the crypto market bottom is in, and new highs are imminent. The trader pointed to several factors supporting this view, including recent price action, market structure and the impact of Bitcoin ETFs.

The expert noted the recent crypto weakness against equities, attributing it partly to the Mt. Gox headline. "Insiders were front running the news of billions worth of BTC being distributed to creditors," the trader explained, referencing a thread by Galaxy Digital's Head of Research that suggests less sell pressure than the market expects.

The trader highlighted the current negative sentiment in the crypto community, stating, "Crypto Twitter sentiment is literally the worst I've ever seen it with BTC less than 20% off ATH's." This pessimism, according to Flood Capital, sets the stage for a potential rally.

Benzinga future of digital assets conference

Also Read: Ethereum Co-Founder Confident Cardano Will Flip Bitcoin To Emerge As World’s Biggest Crypto: ‘There’s Nothing That Can Compete With It’

Why It Matters: Flood Capital emphasized the structural differences between the current market and that of 2021, noting that new capital is primarily flowing into Bitcoin through ETFs. "All of this new capital flooded into BTC which has a very low natural drip into altcoins," the trader observed.

This, combined with so many high-profile projects that raised money in 2021-2023 that hadn't launched tokens yet, led to a massive wave of low-float high-FDV launches around one million different meme coins.

The trader is particularly bullish on the potential impact of Ethereum ETFs, despite current low expectations. "ETH ETF expectations are in the gutter, people worried about ETHE outflows and Kang is fudding the bottom," Flood Capital stated, arguing that BlackRock’s success with its Bitcoin ETF will likely lead to aggressive promotion of its Ethereum product.

What’s Next: Based on this analysis, Flood Capital has taken significant long positions in Ethereum and Toncoin TON/USD. The trader believes that once Bitcoin and Ethereum break their all-time highs, it will reignite retail and fund interest in the broader crypto market.

The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

Read Next: Bitcoin Spot ETFs See $31M Net Inflows, First In A Week

Image: Shutterstock

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