Experienced traders from Almeda Research and Galaxy Digital have predicted that the cryptocurrency market may begin to see recovery, granted once the impact of the recent negative news stories subsides.
The crypto markets have, of late, been seeing downturns since May, Bitcoin constantly experiencing fluctuations within the low to medium range of 30K USD.
Jason Urban, trading co-head at Galaxy Digital, while speaking with Kitco News on the 24th of June maintained that once the FUD (or fear, uncertainty, and doubt) regarding Bitcoin begins to dissipate by the Fall, the cryptocurrency should be able to reach unprecedented highs and may even achieve a value above of above 70K USD by this year’s ends.
Urban, comparing crypto as an analogy, said that institutional cryptocurrency investment is merely in the first inning. Although he thinks regulative uncertainty has put a restraint on many institutions from appearing in the cryptocurrency market, once they do end up entering, the greater demand for the restricted supply of Bitcoin should be able to bring prices up to unprecedented highs.
Sam Trabucco, a trader at leading quantitative cryptocurrency trading company Alameda Research, also thinks markets are going to enter a stage of recovery. He also questioned the legitimacy of the numerous narratives that were impacting the recent degrees of FUD.
In a Twitter thread on June 23rd, Trabucco talked to his 64K followers, saying that the US regulations, the FUD further spread by the Chinese government, and Elon Musk’s ecological concerns over Bitcoin mining, and issues over the financial competency of MicroStrategy amidst the Bitcoin dip, have all led to an overreaction.
Trabucco affirmed that liquidations are aggravating the public overreaction to Bitcoin’s price changes.
He further stated that investors were forced to sell down to 30K USD despite not wanting to, which meant that it was a great investment opportunity.