Three Arrows Capital CEO Zhu Su is providing his opinion on why Cosmos (ATOM), Fantom (FTM) and Near (NEAR) are appreciating as the remainder of the market developments downwards.
Su says in a collection of tweets that the three digital property are among the many cryptocurrencies that macro traders personal the least quantity of.
According to the crypto hedge fund CEO, macro traders are exiting their crypto positions because the Federal Reserve Bank begins chopping asset purchases, also called tapering.
Su says the macro traders entered their crypto positions after the market crash witnessed in March of 2020 on the peak of the Covid-19 pandemic.
“One path-dependent reality of historical past is that the Covid-19 March 2020 dump regrettably flushed out a lot of true believers, cryptonatives, who have been lengthy for halving.
On the way in which up, crypto caught a bid from macro funds searching for a increased beta play to financial circumstances.
I’m within the camp that with or with out Covid-19, crypto was going to go up anyway–the Covid-19 flush-out merely modified the make-up of the members. The Bitcoin/S&P 500 inventory market index correlation elevated considerably.
What we’re seeing now’s an unraveling of macro fund positions as taper comes nearer.
This capitulation + switch of danger again to the market was essential for crypto. I count on a lot decrease S&P 500 inventory market index /crypto correlations going ahead.
It’s not a coincidence that the coins macro boomers personal the least of are holding up the most effective now (Near, ATOM, FTM) at present ranges.”
Cosmos is presently buying and selling at $43.93, up 80% over the previous 30 days. Fantom is buying and selling at $2.83, up 77% over the previous 30 days, and Near is buying and selling at $15.39, the identical price it was exchanging arms seven days in the past. Over the previous 30 days, NEAR is up by barely over 100%.
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