While bitcoin is trading at very low volatility, news reports confirm that major players are using this time to accumulate positions. In earlier reviews, it was noted that the sideways range indicates that there is a large collection of volume, someone from "major players" is pushing bitcoin from one border of the corridor 31,082.82 - 41,980.24 to the other.
The news suggests that hedge funds are considering the decline of the crypto market as an investment opportunity and do not seem to be afraid at all. Despite the fact that bitcoin has lost more than half of its value in US dollars, players with big money, such as hedge funds, still hold positions in the digital currency.
Institutional investors are now increasing their presence in the field of cryptocurrency and blockchain. Back in June, a survey of 100 financial directors of hedge funds around the world showed that they expect an increase in the volume of digital coins in their portfolios.
Speaking to Cointelegraph China earlier in July, Cornell University professor and creator of Avalanche Emin Gun Sirer said the current downturn in the market has hardly dampened enthusiasm among institutional investors. According to Sirer, the legitimacy of cryptocurrency as an asset class is "beyond doubt."
He noted that even pension funds are starting to slowly transition to virtual coins.
Joe DiPasquale, CEO of crypto hedge fund BitBull Capital, also echoed Sirer's comments, saying in an interview with Cointelegraph, "Institutional investors remain motivated and continue to build positions at key support levels. Naturally, the hype in the market has subsided, but these downturns have historically been favorable times for a long-term entry. "
A representative of Nickel Digital Asset Management, a hedge fund with a turnover of $200 million, also spoke about the new strategies of institutional players against the background of the current trading of cryptocurrencies with a limited range. He said that the fund observes the active and constant participation of the entire institutional community, including pension and hedge funds:
"Recent volatility has proven to be an opportunity for certain trading strategies (eg, market neutral arbitrage), while at the same time discouraging others (beta risks for underlying cryptoassets). In fact, this created an immediate demand for low volatility protection funds. Investment objective, size and risk tolerance are critical factors in evaluating any investment opportunity, especially in cryptography. "
Indeed, Nickel Digital has recently rebalanced its cash position as a result of the current market downturn. The company called it an exercise in"financial discipline."
Thus, there is no reason to cancel the forecast of a possible rebound of bitcoin up from the sideways support 31,082.82 - 41,980.24. Or from the low of 28,392.99. Only the price is moving towards these targets very slowly, but this does not change the situation. For those looking for an entry point, it is important now to be patient. The result is good profit potential with low risk.
