- CNBC analyst, Brain Kelly, recently warned that the upcoming Ethereum merge is riskier than the traders’ understanding.
- He discussed the Ethereum investors’ trading expectations.
Brian Kelly, the founder of a digital currency investment firm, BKCM, highlights the prospects for Ethereum (ETH) a few weeks before the project begins the prior network upgradation.
Kelly’s Prediction on The Ethereum Merge
Kelly speaks in the latest episode of Fast Money, that the Ethereum investors may not earn as big for their profitable tradings as they expected. He reasoned this, due to the inflation mechanism of ETH.
He mentioned in the show, “I think it’s probably more ‘sell the news,’ which is maybe not that intuitive because in crypto you generally want to buy the news. But everybody has been buying Ethereum because they’re going into this merge and now you’re going to get a so-called yield.
Just so you know, it’s not really a yield. You’re just getting your inflation rewards back, so it’s kind of offsetting the inflation in the currency. It’s not really a yield.”
Kelly predicts the excitement of investors moving towards a sell-off. He also warns about the possibility of confusion or outright failure, which may negatively affect the Ethereum price and the project as well.
He discussed the crypto correlation to the tech stock sector and highlights the fundamental differences between Bitcoin and Ethereum.
As he said, “I think there’s some nuance here, in that Bitcoin itself is not a tech stock. It is definitively an alternative currency. It is digital gold. You need it when your country destroys its currency, like a lot of governments are doing today. Ethereum, on the other hand, can be somewhat thought of as a tech stock because it is going to disrupt a lot of what tech stocks are doing today.”
Source: https://www.thecoinrepublic.com/2022/09/03/why-did-cnbc-analyst-say-the-upcoming-ethereum-merge-is-riskier/