While Bitcoin (BTC) and Ethereum (ETH) continue to be the top coins, altcoins still attract significant interest from institutional investors, said the head of institutional research at a major cryptocurrency exchange. David Duong claims. coin base.
Duong participated discussion The founder of the crypto options trading platform was also featured as part of an interview panel with popular crypto analyst Scott Melker on March 2nd. crossro Dan Gansberg and Founder of Investment Advisors Morgan Creek Capital Mark Yusko.
Discussing the performance of the crypto market over the past year, Duong said what he currently sees in terms of exchange flow from institutional investors on Coinbase is:
“55% of this is still in Bitcoin and Ethereum, but that means the rest is in altcoins – so there is still a lot going on in the rest of the ecosystem outside of Bitcoin and Ethereum. are being paid attention to.”
What we are witnessing in the market now is a more macro-focused one, he added, with people recognizing that this is a “seasonally weak period for many risk assets.” On the one hand, “people are getting bonus payments and putting money into their 401(k), the U.S. personal pension account,” and on the other, “our” It’s just before. Many checks are being cut for tax season. ”
Therefore, Mr. Duong said:
“We are in such a weak time, but we are trying to come to a conclusion about what is happening. [Federal Reserve] Or what else is going on, such as the correlation that is happening between crypto assets and other risk assets?”
He concluded that, “relatively,” macro terms for risk assets, including crypto, are neutral at the moment. But in the second quarter of this year, he warned, “we will face a real debt ceiling problem” as the economy could potentially weaken.
Melker also has seen “little stories” related to altcoins, but commented that these “look like much smaller and faster bubbles than the altcoin stories we’ve seen in the past.”
“It’s like an old kind of washing machine cycle where crypto natives just go in and out of the altcoin narrative and no new money comes in.”
Compared to what we’ve seen in the past, it looks very hypercyclical, Duong agreed, adding, “It seems to be moving very quickly.” [into it] And get out of it pretty quickly. ”
Regarding how new money is entering the space, Yusko argued that among other things, it is people who are aware of having uncorrelated institutional-quality real assets, arguing that “bit Coins are the most uncorrelated asset I have ever seen in my career.”
spring is coming summer is coming
According to Yusko of Morgan Creek Capital, it is indeed spring for cryptocurrencies, but “spring is not summer.” Spring is accompanied by erratic weather. It is “windy and choppy”. FTX The exchange and its founder, Sam Bankman Freed.
But summer is coming, he suggested, especially with Bitcoin’s halving approaching and the Shanghai fork of Ethereum approaching.
Gansberg said looking at the curve of bitcoin futures could lead to an increase in price.
“There’s actually yield on offer, which hasn’t been seen in a while. And for me, and I’ve been in crypto since 2015, ever since they actually started trading futures, It has always been, like 2017-2018, was a good leading indicator to see if prices would rise in the future.”
Gansberg said when the price went up, the crowds would come and go even higher, creating a “very strong […] It creates a feedback loop of its own,” but it also drives prices down, and “that’s what embodies a lot of this kind of long-term volatility that we see in cryptocurrencies.” increase.
Melker concluded: black swan event,
“There’s a good chance it’s actually bottoming out, and I think it’s going to chop sideways, and it’s going to be really annoying for quite some time.”
You can watch the full interview here:
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