Bitcoin’s painful dip below $ 30,000 on Tuesday has become a so-called “buy-down” opportunity for Alameda Research, a Hong Kong-based liquidity solutions and quantitative trading company led by FTX CEO and Founder Sam Bankman-Fried.

Quantitative trader Sam Trabucco announced late Tuesday that the company bought Bitcoin during its recent decline, adding that the company’s cautious strategy of buying BTC / USD has resulted in at least three “recovery” catalysts : a potential end to the ongoing crypto FUD (China Ban, Grayscale Epic Unlock etc), intraday market rally securities and long-term liquidity are weaker in the derivatives market.

“From my point of view, all of these points are [to] a similar (albeit ambiguous) direction, ”writes Trabucco.

“The impact of news tends to return? I expect the cryptocurrency to appreciate a lot more in value. The stock market * has * recovered? I also hope that crypto will return even more. Liquidation movements often return? Same story. “

And all of this has resulted in Alameda doing what we do best – bought in the past few days or so much more. This isn’t exactly the “sell us anything you want for under $ 30,000 and discount” territory, but we keep buying here because it really seems too much that way. . pic.twitter.com/8l01jJAnhZ

– Sam Trabucco (@AlamedaTrabucco) July 21, 2021

Panic Before Selling? Different opinions

The claims come as Bitcoin attempts a modest rebound above $ 30,000 on Wednesday. The cryptocurrency hit an intraday high of $ 31,669 on the FTX exchange, having just hit a record $ 900 million. Thereafter, the price corrected lower, albeit marginally, suggesting limited selling pressure near this high.

Meanwhile, Naeem Aslam, senior market analyst at AvaTrade Ltd, stressed Bitcoin’s resilience to the recent bearish outlook, with some previously noting that a closing price below $ 30,000 would cause cryptocurrencies to plummet.

“Actually, we didn’t see that,” the executive told Bloomberg. “Bitcoin price has stabilized and we are not seeing any panic selling.”

Jeffrey Wang, Regional Head of the Americas at crypto finance startup Amber Group, however, gave a cautious outlook. Speaking to Cointelegraph, the former Morgan Stanley executive said that Bitcoin continues to trade under the influence of global risk, which could expose the cryptocurrency to further losses. He continued:

“Given the relatively calm price movement, speculative activity and short-term trading have weakened somewhat recently. As we see more volatility, expect more traders to show interest. However, this could continue to depress prices if the risk landscape remains weak. “

Edward Moya, senior market analyst for America at Oanda, also weighed negatively on the recent correlation between Bitcoin and Wall Street. He noted that if US stock indices went into “panic sell mode” it would cause the leading cryptocurrency to decline at the same time.

“It is important that the digital currency regains ground above $ 30,000 as a significant breach could lead to a massive technical sell-off,” Moya wrote in a statement on Tuesday.

Related: $ 13,000 Bitcoin Price Prediction Comes With BTC Falling Below The Historical Trendline

Regarding Alameda, Trabucco admitted that the company recognized the downside risks in the Bitcoin market, but its recent accumulation has been more focused on the cryptocurrency’s long-term prospects. He says:

“We are actually putting sizeable long-term delta positions in a quantum pool and I’m glad it goes in that direction so often – bull markets are much more interesting.”