Previously Bearish on Crypto Market, Jiang Zhuoer Quickly Turns Bullish: Ethereum is the Engine of the Bull Market

Author: Ariel, Crypto City

Jiang Zhuoer Admits Previous Bearish Stance Was "Completely Wrong"; Ethereum Has Become the Engine of the Bull Market

Jiang Zhuoer, founder of the Bitcoin mining pool BTC.TOP, recently posted on X platform admitting that his previous bearish assessment of the market was "completely wrong" and that he was lucky not to miss this wave of price increase.

He revealed that due to the shrinking price increase of Bitcoin, he switched to swing trading since February this year and only realized the market was starting to move when Ethereum ($ETH) broke through the $2,000 mark.

Jiang also pointed out that the ETH/BTC exchange rate has seen a second wave of strong upward movement, indicating that Ethereum has become the "engine" of this bull market, rather than just being driven by Bitcoin. Currently, he is 90% confident that the bear market has ended and is optimistic that Ethereum's performance will surpass that of Bitcoin.

He attributed the recent price surge to U.S. President Donald Trump embracing blockchain technology, which has driven the trend of tokenization and on-chain financial assets in the U.S.

Jiang Zhuoer's Trading Records: Stop-Loss and Profit-Taking Rolling Operations Exposed

Jiang also publicly shared his investment operation records. He previously sold Ethereum in the range of $1,738 to $1,931 and has since bought back at $2,100 after a stop-loss; he then sold 50% of his spot holdings at $2,525 in an attempt to catch the peak, with a stop-loss set at $2,550 (about 1% range), and the profit-taking point adjusted downwards with the market.

Jiang explained that the arbitrage strategy he employs involves staking part of his Ethereum as WBETH as collateral while simultaneously opening a short position in the perpetual contract market for an equivalent amount of spot holdings, allowing him to earn both staking interest and funding rates simultaneously.

He revealed that he still retains 20% to 30% of his capital, and if Bitcoin retraces to the range of $67,000 to $72,000, he will buy in fully; otherwise, he will buy at market price by the end of October at the latest.

Previously Said Bitcoin Could Drop to $30,000, MicroStrategy Wouldn’t Need to Sell Bitcoin

However, Jiang's previous optimistic forecast for MicroStrategy (MSTR), the largest publicly traded Bitcoin reserve company, has shown discrepancies.

In June, he analyzed that MicroStrategy's liabilities account for only about 5% of its assets, and even if Bitcoin plummets to $30,000, the debt ratio would only rise to around 10%, allowing it to maintain operations without selling Bitcoin.

However, despite Jiang believing that MicroStrategy would uphold its image of "never selling Bitcoin," due to the significant drop in the preferred shares (STRC) issued by MicroStrategy below the par value of $100 in recent months, the cash reserve pressure has been heavy. As a result, MicroStrategy has begun selling part of its Bitcoin for the first time since 2022 to pay dividends on its preferred shares.

Currently, the price of STRC has returned to $96.18 but has not fully recovered to par value.

Strong Inflow of ETF Funds, Sustainability Still to Be Observed

The recent surge in the cryptocurrency market is primarily driven by strong inflows of ETF funds.

Data from SoSoValue shows that last week, the net inflow into U.S. Bitcoin and Ethereum spot ETFs reached as high as $2.6 billion, setting a record for the largest weekly net inflow in nearly a year.

Among them, Bitcoin ETFs saw a net inflow of $1.9 billion, while Ethereum ETFs had $697 million in inflows, both hitting new weekly highs since 2026.

However, according to a report by Decrypt, CoinShares research director James Butterfill cautioned that although the overall market environment has improved, the buying power of large institutional holders remains limited and is not enough to confirm the continuation of the bull market. For Bitcoin to solidly stand above the $80,000 mark, clearer signals of a monetary policy shift from the Federal Reserve are still needed.