Theodoro Fleury, from QR Asset Management, highlights market maturity and optimism with an upward trend
Brazilian executives of cryptocurrency managers are also eyeing the movements in the crypto market and show optimism for the second half of 2020, even after this week’s $ 1,500 flash crash, according to Valor Investe.
Theodoro Fleury, from QR Asset Management, points out that the reasons for Sunday’s fall are not yet clear, but that this behavior is “abnormal” in the market:
“This kind of thing is not abnormal. It is a little the result of leverage; as it is an unregulated market, derivative platforms move very high volumes as prices go up, and more experienced investors can try to scare newbies”
The executive also says that the new crypto market rally may reflect a number of factors combined: demand for hedge in the pandemic, greater adoption by major players, permission in the US for banks to custody cryptocurrencies and even halving in May:
“After the pandemic, there was a strong easing of monetary policies in developed countries. And we saw major foreign investors taking positions or targeting this market, such as Medallion, the famous quantitative fund of the Renaissance management company, which in April announced that it would start to operate cryptocurrency contracts. We knew that, even with a certain delay, all this would be fuel”
The rally also broke a bitcoin macro downward trend that has spread since the high of late 2017. Also with more “mature” investors, the market should operate with optimism at least until the end of 2020:
“I realize that the people who come to us are increasingly qualified and informed. In addition, there was a downward trend since 2017 that was, after all, broken. The next six months can be surprising.”