$10,000 support strong! Three Arrows Capital CEO: Possibility of rising to $100,000 greater than falling back to $5,000

The CEO of venture capital firm Three Arrows Capital, Su Zhu, predicted a market pullback last Friday. While Ether dropped as expected to the $320 level, Bitcoin surprisingly held above the $10,000 support level. Su Zhu stated that in this scenario, the likelihood of Bitcoin rising to $100,000 is higher than it falling to $5,000.

Pullbacks are Necessary for Higher Bounces

Su Zhu, the CEO of Three Arrows Capital, pointed out in a tweet last Friday (4th) that during a bull market, the overall cryptocurrency market usually needs to experience a one-third pullback before continuing to move higher. Su Zhu directly stated that Bitcoin (BTC) returning to $8,800 and Ethereum (ETH) returning to $320 are healthy pullback targets in the medium to long term.

"Generally, when the market is thriving, there is often a pullback of one-third or more in the bull market. BTC at $8,800 and ETH at $320 are perfectly healthy targets, and your trading strategy needs to consider this non-zero probability."

https://twitter.com/zhusu/status/1301894309570990080

After a few days of pullback, Bitcoin did not return to Su Zhu's projected level of $8,800, but continued to stabilize above the $10,000 support level. In response, Su Zhu tweeted again yesterday, expressing his amazement at the strength of Bitcoin at $10,000 support, and stating that there is a high probability that Bitcoin's price will reach astonishing heights.

"The $320 minimum price for Ethereum makes sense and has been achieved; I am amazed at the strength of Bitcoin in the $10,000 range, which at this stage means that the likelihood of rising to $100,000 is higher than falling to $5,000."

https://twitter.com/zhusu/status/1302577701828456448

DeFi Learning and Growing from Mistakes

In addition to Bitcoin, Su Zhu is also closely monitoring the developments in the decentralized finance (DeFi) sector. In fact, most of Three Arrows Capital's investment targets are decentralized finance projects. He stated that people should learn and grow from the chaos caused by the recent hype.

"Let's learn from this madness: 1. Anonymous founders need higher scrutiny, not lower; 2. Forked projects' builders have not created real value; 3. Engage in adversarial thinking and do not assume people will act against their direct interests for the greater good of the ecosystem."

https://twitter.com/zhusu/status/1302265339221221377

While there are many areas for improvement in DeFi, Zhu believes that the emerging industry indeed has the potential to rise and compete with the more mature centralized finance (CeFi) market.

"If the trend of users moving to DeFi continues, it can be imagined that soon the spot market of DeFi will have the same level of liquidity as the CeFi spot market or even higher. Subsequently, investors in trading margin products may increasingly view DeFi margin trading as a viable alternative, which in turn may compel CeFi exchanges to incorporate DeFi liquidity into their financial markets."