A famed Bitcoin evangelist Tom Lee thinks that Ethereum (ETH) will drastically drop in price once the new Ethereum futures get officially launched. However, he also thinks that it will definitely benefit Bitcoin since those investors who feel bearish about crypto will find another scapegoat.
A frontloaded success
As U.Today has recently reported, CBOE is mulling over launching Ethereum futures by the end of 2018. However, Lee actually believes that this might negatively influence ETH. The famous Bitcoin permabull provides a simple explanation– Ether bears will be betting against the currency in full force, which will eventually lead to a huge drop in price.
CME and CBOE Bitcoin futures are believed to be behind the coin’s all-time high in December. However, we all know how the things turned out– Bitcoin lost almost 70 percent of its value since the December peak. Lee is certain that Ethereum is going to face the same fate once the CBOE futures are launched.
Bitcoin will benefit from Ethereum futures
However, the Wall Street expert is also certain that Ethereum futures will be a good thing for Bitcoin since market bears, which currently focus on shorting BTC, would switch to its main rival. Futures give traders an opportunity to bet on a certain currency without even owning it.
CBOE only has to get SEC approval in order to officially launch Ethereum futures, so we are going to see if these predictions come true very soon. Meanwhile, Ethereum declined by a whopping 33 percent this August alone.