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Technology
November 25, 2023

Update crypto trading trend from REDeFiNE TOMORROW 2023

An update on the cryptocurrency market movement from the prior year shows that there were numerous occurrences that led to fluctuations, had an impact on trading strategies, and altered industry growth directives. We delve into the details with the experts who shared their insights at REDeFiNE TOMORROW 2023, hosted by SCB 10X and Bloomberg, including Michael Wu, CEO & Co-Founder of Amber Group, Darius Sit, Founder & CIO of QCP Capital, and Samar Sen, Head of APAC of Talos. 

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Movement in cryptocurrencies over the last six months.

Both of them expressed the same views by bringing up the collapse of a well-known, established bank, which made people aware of Bitcoin as a substitute for risk spread. Low trading volume and liquidity were provided by the previous cryptocurrency market movement. In reality, a bear market was still in effect at the time. Supervisory authorities in Western countries also applied pressure against crypto or responded to it more cautiously. Eastern countries like Singapore, meanwhile, received a favorable response from their governments.

 

More importantly, people understood that Bitcoin was an asset that was safe from numerous unfortunate occurrences. Asian investors showed increased interest in cryptocurrency in countries like China and Hong Kong where cryptocurrency investments are more accepted.

More progress was made due to innovators' global expansion. There were also many innovations created, such as new Layer-1 or roll-up solutions.

 

According to Wu, changes in monetary policy or geopolitics could affect market prices. There was a significant impact on cryptocurrency prices and investor confidence. The future direction of the cryptocurrency market was probably determined by this factor.

Evolution of the interesting trading and infrastructure ecosystem.

Wu introduced the leverage technique, which allowed the majority of institutional clients to invest through trading in derivatives and with top brokers. He also spoke about the ongoing development of infrastructure initiatives, such as asset custody solutions. The crucial factor was that major or institutional investors required asset custody from a trustworthy third party to lower long-term risk.

The development of Ethereum or scaling solutions led to changes in the structure of a decentralized exchange. Additionally, more specific platforms for lending and NFTs were created. He believed that the industry was expanding gradually but effectively, along with additional infrastructure.

According to Sit, options trading was appealing and the starting point for many traditional investors because of the similar marketing structures and plug-and-play capabilities. Major investors started their crypto market survey with this type of trading. Similarly, Wu believes that options market infrastructure still needs to be developed. It took some time for the current trend to spread and become widely adopted, even though the right products were developed.

Trading strategy suggestion.

When discussing the current trading strategy, Wu frequently advised his clients not overtrade until they were familiar with the market and were able to formulate a clear strategy. They should focus on putting their concept ideas for investments into practice.

Darius Sit acknowledged the high return from the Meme coin but cautioned about the market volatility that increased risk. Despite the possibility of high profits, they could also experience high losses. Since last year, the current cryptocurrency investment strategy had undergone yet another change. Investment strategies became more difficult because they needed patience and experience to manage unpredictable risks.

 

Additionally, both agreed on the need to bridge the gap between the cryptocurrency infrastructure and the traditional investment base because institutional investors were beginning to pay more attention to cryptocurrencies, which was seen as another crucial development step.

Future trends and widespread adoption

To facilitate the influx of investors from the traditional financial sector and to provide more amiable supervision, traditional cryptocurrency infrastructure needs to be extensively modified. Wu expressed his enthusiasm for the business' capacity to bring about innovation in the sector and noted the potential for exciting and unpredictable new trends. He worried about crypto's uniqueness, though, because it depended on external variables and decision-makers.

 

Sit, meanwhile, expressed support for the cryptocurrency industry as it entered a critical phase and attracted attention. He was fairly confident that he would witness the cryptocurrency industry's transition from new assets to mainstream assets.

 

Watch on YouTube at https://youtu.be/a-hJ4GZzMq8

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