“Too much leverage and concentration and too little liquidity are the largest mistakes any crypto hedge fund can make.”
The largest blockchain event ANON Summit 2020 went live online on May 19‒20. As always, the summit brought together the blockchain crowd from all over the globe and focused on digital economy and things crypto. To spite the pandemic, ANON fully recreated the in-person conference experience in a web-based digital space.
Anatoliy Knyazev, Executive Director at EXANTE, joined the ‘Trading on Market Volatility’ panel. His co-panelists were Tone Vays, Content Creator, Derivatives Trader & Consultant, and Mati Greenspan, Founder of Quantum Economics. VP of Portfolio Management at Exponential Leah Wald moderated the discussion.
Anatoliy shared a few insights into the market behaviours based on EXANTE’s client base. In a nutshell, the market heavily relies on investor confidence. Here are some of Anatoliy’s theses:
- During market fluctuations, investors don’t rush to buy crypto.
- Crypto is back in the limelight once the market goes on the rise. When investors have satisfied their appetite for stocks and bonds, they’ll have enough confidence to explore the crypto markets
- Brokers have been waiting long for institutional investors to embrace crypto. The trend is here, yet global adoption takes quite a while
- Traditional investors prefer stocks as their recover faster than crypto currencies
- On the equity market, traders will hardly achieve consistent year-on-year gains relying solely on technical analysis. On the crypto markets, it’s complicated to trade based on fundamental analysis only.
- You’ll have a hard time defining 'fundamental' for a blockchain project, let alone bitcoin
- Investors will become increasingly interested in options. Their volume is quite low and the market is illiquid, yet they will surely improve
- Another lockdown will bring a downturn to the crypto markets All assets sell in exchange for cash, yet cryptos have the hedging potential
Watch the full panel discussion and share your feedback!