The impact of spot ethereum ETFs on the price of ether after they start trading could challenge the old adage, suggests crypto analyst and educator Patrick Scott, also known as “Dynamo Defy.”
The popular crypto personality predicts that Ether will not follow in Bitcoin's footsteps, with BTC almost doubling in value since the launch of the Bitcoin ETF in January.
“I don't expect the same kind of multiple in the two months we've had with Bitcoin,” Scott told Hall of Flame from his car in the parking lot shortly before saying “wait” as a police car pulled up behind him.
It turns out that they are not after him, thank God.
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ToggleSpot-Ether ETFs lack the benefit of initial excitement
Scott went on to point out that Bitcoin ETFs had the advantage of being the first crypto ETFs available to investors.
“Bitcoin was the first crypto, but it was also the first ETF. So people who had no crypto exposure can suddenly buy bitcoin and get crypto exposure,” Scott says. He's skeptical that those same investors will want exposure to Ethereum.
“A subset of those people are saying, ‘Now I can get more crypto exposure by buying this one,'” he says.
Patrick Scott, Who is Dynamo Diffie?
Scott has 77,000 followers on X — not on the same level as major influencers like Saylor and Buterin, but still enough to fill three Madison Square Gardens.
He is known for providing daily analysis on crypto projects, explaining market trends in an easy-to-understand tone, and making simple observations on general market sentiment.
A big pullback in Ether before launch could be a golden opportunity.
He thinks that Ether can reach the same relative price peak as quickly as Bitcoin did after it started trading, only if there was a big dip before the start.
“Unless we get a big reversal. I don't think it's going to be extreme because we're at a different point in the cycle when Bitcoin ETFs are approved,” he says.
When Bitcoin ETFs launched in January, it took just two months to reach an all-time high of $73,679 on March 13.
Scott believes that major players are not as interested in Ether as they are in Bitcoin.
“Also, I think the acceptance of ETH as Bitcoin is much lower,” he says.
What made Patrick Scott famous on X?
Like many other crypto influencers today, Scott doesn't just sit behind a keyboard in his mom's basement sharing crypto tips and news, he also knows how to look good on camera.
But it wasn't planned to be an “influencer” in the first place. He has a crypto-ignorant but curious father to thank for that.
“I first made a YouTube video because I was trying to show my dad how to do something in DeFi on the Avalanche Network. This was back in the spring of 2021 and there weren't any good videos on how to do this,” he laughs.
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“I was like, OK, I'm just going to record one, and if he's having this problem, it's probably other people, so I'm going to upload it,” he added.
He started posting videos often and started tweeting after going viral a few times.
As his following grew, he realized he needed to create a more catchy name.
“I was going through the Scrabble dictionary for words that start with D to go with Daffy, and I picked Dynamo because it sounds cool, and I guess it's from the Greek word,” he laughs.
In the year After Scott got serious about X in 2022, he went through a “long period” of tweeting every morning — usually seven, his lucky number. It's a crypto how-to that mixes screenshots of news articles and his own commentary, which has built a following.
He describes the feeling he gets when a post goes viral as “just a crazy dopamine rush.”
“I think people aren't equipped to suddenly get social validation from hundreds of complete strangers that what you're doing is incredible and so hard,” he says, adding that he's used to it now.
What kind of content does Patrick Scott like?
Scott follows many crypto traders and analysts closely to stay on top of all the trends and avoid the noise in the crypto market.
One of his “favorites” is eponymous crypto analyst Red Phone, who Scott believes is one of the best in the game.
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“I think he is one of the best writers in crypto. He writes about things with big implications and not only does everyone know how macro affects crypto, but what I love about him is that a lot of his writing is how he talks about how crypto affects the macro picture.
Andrew Saunders, chief marketing and development officer at Scale Labs, and podcaster and influencer Defy Aba Scott are two others to watch closely.
According to Scott, Sanders has a lot of “fun things to do” in the crypto market, while Daffy's father is “a great interviewer and a big premium on Ethereum.”
What predictions does Patrick Scott have in mind?
“He looks at every reason why we think we're in the cold ahead of the global adoption cycle,” said Scott, anticipating that major retail investors could enter the market at the next stage.
While he didn't reveal exact price targets and timeframes, he sees Ether's recent rebound from $3,900 as a “gift” if you “look at it the right way.”
Although he remains on the forecast that Ether will probably not double as much as Bitcoin did in the two months since the ETF started trading, he believes that the overall trend will move in the same way.
“I would say: I expect a similar directional movement. But that's because we're at different stages in the cycle. “I don't expect it to double,” he says.
However, he is not interested in estimating how many months it will take for Ether's price to double.
“So I don't want to make specific predictions about months,” he replied after a cheeky grunt.
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Ciaran Lyon
Ciaran Lyons is an Australian crypto journalist. He is also a freelance comedian and has been a radio and TV presenter on Triple J, SBS and The Project.