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Crypto trading firm Cumberland sees ‘nascent uptrend’ for the market – BNN Bloomberg

(Bloomberg) — An “incipient uptrend” is emerging in the cryptocurrency market as the macro backdrop improves, the dollar weakens and adoption of digital assets continues.

That’s according to Cumberland, the crypto offshoot of Chicago-based trading giant DRW, which says the dollar’s “seemingly inexorable rally” earlier this year appears to have peaked after helping to suppress sentiment in major currency classes. assets. Additionally, disruptions in early 2022 — including Russia’s attack on Ukraine and supply chain issues — “have reached an unstable state of equilibrium,” the company tweeted on Monday. “Absent new geopolitical developments, reduced volatility should lead to higher asset prices.”

Meanwhile, the crypto space could see “a less adversarial environment” in Washington DC if Republicans win victories in the midterm elections, potentially creating a standoff with different parties controlling the executive and legislative branches.

Finally, Cumberland points to some milestones in crypto adoption that in the past could have fueled “spectacular rallies.”

“With all of this, prices are essentially flat since mid-summer (roughly equivalent to 2017 cycle highs) and do not yet reflect the changing macroeconomic, political, geopolitical and micro/fundamental winds,” said Cumberland’s tweet.

Crypto market watchers have been looking for green shoots all year as coin prices remain mired in a prolonged bear market. Several pointed to signs, using precedent or historical data, of a bottom forming for Bitcoin. Even relatively smaller gatherings have recently boosted optimism that the worst is probably over.

Still, the token is down 55% this year and has been hovering widely around $20,000 for weeks. Others say the selloff is not over yet, with digital asset researcher CryptoCompare pointing to historical data as evidence that the market could see further declines.

And while institutions may be more invested than they have been in the past, their membership hasn’t been a catalyst to push prices higher, according to Leah Wald, managing director of the investment firm. in digital assets Valkyrie Investments.

“Institutions have a longer time horizon. As a fiduciary, they can’t just jump into a strategy either,” Wald said in a recent episode of Bloomberg’s “What Goes Up” podcast. “There are a lot of other hurdles that institutions face – whether it’s risk metrics and so on, and also generally the vehicle they need to buy it.”

Bitcoin fell 2.5% on Monday to trade around $20,597. Other tokens also declined, with Binance Coin and Solana each losing more than 6% at one point.

©2022 Bloomberg LP

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