Richest Crypto Billionaire Trading Company Reveals They Buy Way More Bitcoin Below $ 30,000

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Bitcoin’s (BTC) painful plunge below $ 30,000 on Tuesday turned into a so-called bearish buy opportunity for Alameda Research, a Hong Kong-based quantitative trading firm and liquidity solutions company led by CEO and founder of FTX, Sam Bankman-Fried.

Quantitative trader Sam Trabucco revealed on Tuesday night that the company bought Bitcoin during its last price cut, adding that the company’s cautious strategy to go long BTC / USD has surfaced on at least three catalysts of recovery: a potential end to the ongoing crypto FUD (China ban, Grayscale epic unlock, etc.), intraday stock market recovery and weaker long liquidations in the derivatives market.

In my opinion, all these points [to] a similar direction (albeit vague), wrote Trabucco.

Does the impact of the news tend to reverse? I would expect crypto to rally more. Has the stock market * returned? I would expect crypto to come back more as well. Are liquidation movements generally coming back? Same story.

And all of this has led Alameda to do what we do best – buy A LOT more in the last day. It’s not quite “sell us anything you want under $ 30,000 and fuck you” but we keep buying here because it really seems like too many points that way. pic.twitter.com/8l01jJAnhZ

– Sam Trabucco (@AlamedaTrabucco) July 21, 2021 Panic-sale coming up? Opinions differ

The statements emerged as Bitcoin attempted a modest rally above $ 30,000 on Wednesday. The cryptocurrency hit an intraday high at $ 31,669 on the FTX exchange, which just raised a record high of $ 900 million. Later, the price corrected downward, albeit minimally, showing limited selling pressure near said session peak.

Meanwhile, Naeem Aslam, chief market analyst at AvaTrade Ltd, pointed to Bitcoin’s resilience to the recent bearish outlook, with some earlier noting that a close below $ 30,000 would push the cryptocurrency down sharply.

In reality, that’s not what we’ve seen, the executive told Bloomberg. The price of Bitcoin has remained stable and we haven’t seen any panic selling.

But Jeffrey Wang, head of the Americas at crypto-finance startup Amber Group, presented a cautious outlook. Speaking to Cointelegraph, the former Morgan Stanley executive said Bitcoin continues to trade under the global influence of risk, which can subject the cryptocurrency to further losses. He continued:

With relatively calm price development recently, short-term speculation and trading has declined somewhat. When we see more volatile moves, expect more traders to show interest. But that could push the price down further if the risk environment remains weak. Bitcoin’s rally has lagged behind Wall Street indices despite a tandem drop earlier this week. Source: TradingView

Edward Moya, senior market analyst for the Americas in Oanda, also weighed negatively on the latest BitcoinWall Street correlation. He noted that if the US stock indexes enter panic sell mode, it will cause the flagship cryptocurrency to fall in tandem.

It is critical that the digital coin regain ground above the $ 30,000 level, as a major breach could result in a massive technical sell-off, Moya wrote in a note on Tuesday.

Related: $ 13,000 Bitcoin Price Forecast Emerges With BTC Falling Below Historic Trendline

As for Alameda, Trabucco admitted that the company realized downside risks in the Bitcoin market, but its latest wave of accumulation has focused more on the long-term outlook for cryptocurrencies. He said:

We’ve put in some pretty big long-term delta positions for a quantitative team, and I’m glad it’s been in that direction so often the bull markets are so much more fun.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move comes with risk, you should do your own research before making a decision.

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