Crypto analyst Teng Yan contrasted potential bull and bear cases for the top cryptocurrencies ahead of the Ethereum ETF launches.

What Happened: Teng Yan expressed his "hopelessly optimistic" stance but also made a potential bear case for Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), noting that Bitcoin ETF flows are decelerating and might even be reversing. This, coupled with a slower-than-expected ramp-up in institutional sales, poses a significant concern for BTC's near-term prospects.

He pointed out that Ethereum ETF flows could be minimal initially and compounded by outflows from (OTC:ETHE) redemptions. "The market has already front-run the ETH ETF Flows (up 15% since ETF news)," he says, questioning who remains to drive further buying momentum.

Yan observes no increase in Open Interest (OI) on Ethereum following the announcement, indicating a lack of traditional financial interest.

Also Read: Raoul Pal Foresees Crypto Boom In Election Year's Q4, Names It 'Banana Zone'

Why It Matters: Yan highlighted that with Bitcoin potentially forming a double top at $69,000, coupled with stock markets at all-time highs despite a sluggish economy, there is a possible 10-20% correction in the Nasdaq. The bearish sentiment is further echoed by smart, respectable VCs penning cautionary thought pieces.

The crypto trader acknowledges the low sentiment in crypto Twitter and the divisions among top influencers. However, he maintains a longer-term perspective, embracing the risks but extending his timeframes and staying adaptable.

Yan added, "I'm on Team Bull — I believe we will slowly climb a wall of worry in the coming weeks." He looks ahead with optimism, ready to navigate the challenges while keeping faith in crypto's bright future.

While his post attracted several interactions, most of them seemed to be positive in Bitcoin's long run. He also added that some smart money makers are "selling short-term call options and buying Sep-Dec call options on BTC/ETH."

What's Next: 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.

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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