While other traders mourned, Bitcoin’s drop below $ 30,000 on Tuesday turned out to be a “buy-dip” opportunity for Alameda Research, a Hong Kong-based quantitative trading company that provides liquidity solutions. FTX CEO and Founder Sam Bankman-Fried leads.
The quantitative trader Sam Trabucco has Disclosure on late Tuesday that the company bought Bitcoin during its recent decline, adding that the company’s conservative strategy is to buy BTC / USD in the face of at least three “recovery” catalysts: ending the ongoing crypto FUD ( China ban, historically). Grayscale unlock …), intraday rally in stocks and bearish long liquidation in the derivatives market.
“In my opinion, all of this points to a common path. The effect of news tends to cool off? I expect the cryptocurrency to appreciate a lot more in value. Has the stock market recovered? I expect crypto to recover more too. Liquidation orders are falling? Same story. “
“And all of this has resulted in Alameda doing what we think is best – bought in the last few days or so. This isn’t exactly “sell us anything you want under $ 30,000,” but we’re still buying here because it really seems like too much profit.
The claims came when Bitcoin attempted a modest rebound above $ 30,000 on Wednesday. The cryptocurrency hit an intraday high of $ 31,669. Thereafter, the price corrected lower, albeit slightly, indicating limited selling pressure near the above-mentioned local high.
BTC Price Chart | Source: Tradingview
Meanwhile, AvaTrade Ltd market analyst Naeem Aslam highlighted Bitcoin’s resilience after the recent bearish outlook, with some previously noting that a closing price below $ 30,000 would push the price down dramatically.
“Actually, we didn’t see that. The Bitcoin price is stabilizing and we don’t see any panic selling activity. “
Jeffrey Wang, Head of the Americas at the startup Amber Group, however, gave a cautious outlook. The former Morgan Stanley executive says Bitcoin continues to trade under the influence of global risk, which could cause the cryptocurrency to fall further.
“With relatively calm price movements, speculative activity and short-term trading have recently eased. As the volatility is higher, more traders are expected to show interest. But that could push prices down further if the risk environment remains weak. “
Move Bitcoin’s recovery has reduction index Wall street despite a parallel decline earlier this week | Source: TradingView
Edward Moya, senior market analyst for the Americas at Oanda, is also negative about the recent correlation between Bitcoin and Wall Street. He noted that if US stock indices went into “panic sell mode” it would cause the leading cryptocurrency to decline at the same time.
“It is important that this digital coin regains ground above $ 30,000, as a significantly lower fraction could lead to a massive tech sell-off.”
Regarding Alameda, Trabucco admitted that the company recognized the downside risks in the Bitcoin market, but their recent accumulation is more focused on the cryptocurrency’s long-term prospects.
“We hold large positions for a quantitative team in the long term and I’m glad that is often the case – bull markets are more interesting.”
At home at home
According to Cointelegraph