Bitcoins’ (BTC) painful dip below $ 30,000 on Tuesday turned into a so-called “buying opportunity” for Alameda Research, a Hong Kong-based quantitative trading and liquidity solutions company led by FTX CEO and founder Sam Bankman-Fried.
Quantitative research trader Sam Trabucco revealed late Tuesday that the company bought bitcoins during the recent price drop, adding that the company’s prudent buying strategy in BTC / USD stems from at least three catalysts for a “recovery”: a possible end to Crypto RD & D (China ban, and the epic opening of the gray scale, etc.), intraday stock market jumps and weak settlement of a long position in the derivatives market.
“In my opinion, all of this points in the same (albeit ambiguous) direction,” Trabuco wrote.
“Is the news effect on the decline? I expect cryptocurrency to increase even more. Stock Exchange * Back *? I also predict that cryptocurrency will return more. Do liquidation movements usually return? The same story. ”
Panic sales coming? Opinions are different
The data came after Bitcoin attempted a modest recovery on Wednesday, exceeding $ 30K. The cryptocurrency has set a daily high of $ 31,669 on the FTX exchange, which has just raised $ 900 million. Thereafter, the price made a downward correction, albeit a minimal one, thus demonstrating limited sales pressure near the aforementioned cycle stop.
Meanwhile, Naim Aslam, chief market analyst at AvaTrade Ltd, highlighted Bitcoin’s resilience to recent bearish expectations, as some had previously speculated that close to $ 30,000 would cause the cryptocurrency to plummet.
“This is actually not what we saw,” said the Bloomberg boss. “The Bitcoin price has been stable, and we have not seen panic selling.”
But Jeffrey Wang, head of the US-based crypto-finance firm Amber Group, took a cautious look. Speaking to Cointelegraph, the former CEO of Morgan Stanley said that Bitcoin continues to trade under the influence of global risks that could expose the cryptocurrency to further losses. He performed:
“With a relatively calm price movement recently, speculation and short-term trading have declined somewhat. When we see more volatility, you can expect more traders to show interest. But this can lead to further price falls if the risk background remains weak. ”
Bitcoin’s recovery slowed in Wall Street tests despite a parallel fall earlier this week. Source: TradingView
Edward Moya, chief market analyst for America in Oanda, also influenced the recent correlation between Bitcoin and Wall Street. He noted that if US stock indices enter “panic selling mode”, this will lead to a simultaneous fall in the main cryptocurrency.
“It is important that the digital currency regains strength above the $ 30,000 level, as a significant breakout could lead to a massive technical sale,” Moya wrote in a note on Tuesday.
Related: $ 13,000 Bitcoin price forecast shows BTC fall below historical trend line خط
As for Alameda, Trabucco acknowledged that the company has recognized the downside risk in the bitcoin market, but the recent increase in hoarding has been more focused on a long-term view of cryptocurrency. He said:
“We place quite large delta positions for the Quantum team in the long term, and I’m glad that this trend is often observed – the beef markets are more interesting.”