Alameda Research Admits To Buying A Lot More Bitcoin Under $30,000
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Alameda Research Admits To Buying A Lot More Bitcoin Under $30,000

July 22, 2021      Kavya Barua

Alameda Research, directed by Sam Bankman-Fried, has raised its net worth to $8 billion, admitting to buying a lot more Bitcoin under $30,000.

Alameda Research Milks “buy the dip” Opportunity

The painful drop of Bitcoin (BTC) below $30,000 on Tuesday became a so-called “buy the dip” opportunity for Alameda Research, a Hong Kong-based quantitative trading business and liquidity solutions provider managed by FTX CEO and founder Sam Bankman-Fried.

Quantitative trader Sam Trabucco revealed late Tuesday that the company purchased Bitcoin during its most recent price decline, adding that the company’s cautious strategy to go long BTC/USD arose from at least three “recovery” catalysts: a potential end to the ongoing crypto FUD (China ban, Grayscale epic unlock, etc.), the stock market’s intraday recovery, and weaker long liquidations in the derivatives market.

“In my opinion, all of this leads [to] a similar (though unclear) direction,” Trabucco added.

“Doesn’t the impact of news tend to revert? I believe cryptocurrency will continue to rise. The stock market *did* revert? I’d anticipate crypto to have retreated more as well. When do liquidation moves generally revert? The same old story.”

Is There A Panic Sale On The Way? Opinions Disagree

On Wednesday, Bitcoin tried a tiny rebound above $30,000, according to the statements. On the FTX market, which just raised a record $900 million, the cryptocurrency reached an intraday high of $31,669. Later, the price corrected downward, albeit little, indicating modest selling pressure near the aforementioned sessional top.

Meanwhile, Naeem Aslam, chief market analyst at AvaTrade Ltd, emphasized Bitcoin’s durability in the face of recent pessimistic forecasts, with some previously predicting that a closing below $30,000 would cause the cryptocurrency to fall precipitously.

However, Jeffrey Wang, the head of Americas at crypto finance company Amber Group, expressed caution.

According to the former Morgan Stanley executive, Bitcoin is still trading under the global risk-on impact, which might lead to more loss for the cryptocurrency. He went on to say:

“With recent price movement that has been rather quiet, short-term speculation and trade have diminished considerably. Expect more traders to express interest if we see more dramatic moves. However, if the risk environment stays weak, the price might fall even further.”

According to Oanda’s Edward Moya, if stock indices go into “panic selling mode,” the main cryptocurrency would follow suit. 

Meanwhile, Alameda Research has been concentrating on the long-term prospects of cryptocurrency. Over the last week, the firm has built up significant holdings in Bitcoin.

 

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#Alameda Research #AvaTrade Ltd #Bankman-Fried net worth #Bitcoin #Sam Bankman-Fried #Sam Trabucco
Kavya Barua
Kavya Barua

Kavya Barua is in her final year of graduation from University of Delhi's, B.A (Hons) English program at Janki Devi Memorial College. She is an avid learner with a taste for advancements in crypto and Fintech. She is gaining interest in digital marketing and being a part of the organization where continuous growth and learning is assured and fulfilling the expectations of her knowledge and skills. She aspires to have a good career path with interest and ability to learn and deliver the results.