Three Arrows Capital CEO Zhu Su is offering his opinion on why Cosmos (ATOM), Fantom (FTM) and Near (NEAR) are appreciating as the rest of the market trends downwards.
Su says in a series of tweets that the three digital assets are among the cryptocurrencies that macro investors own the least amount of.
According to the crypto hedge fund CEO, macro investors are exiting their crypto positions as the Federal Reserve Bank starts cutting asset purchases, also known as tapering.
Su says the macro investors entered their crypto positions after the market crash witnessed in March of 2020 at the height of the Covid-19 pandemic.
“One path-dependent fact of history is that the Covid-19 March 2020 dump regrettably flushed out a lot of true believers, cryptonatives, who were long for halving.
On the way up, crypto caught a bid from macro funds looking for a higher beta play to monetary conditions.
I’m in the camp that with or without Covid-19, crypto was going to go up anyway–the Covid-19 flush-out simply changed the makeup of the participants. The Bitcoin/S&P 500 stock market index correlation increased substantially.
What we’re seeing now is an unraveling of macro fund positions as taper comes closer.
This capitulation + transfer of risk back to the market was very important for crypto. I expect much lower S&P 500 stock market index /crypto correlations going forward.
It’s not a coincidence that the coins macro boomers own the least of are holding up the best now (Near, ATOM, FTM) at current levels.”
Cosmos is currently trading at $43.93, up 80% over the past 30 days. Fantom is trading at $2.83, up 77% over the past 30 days, and Near is trading at $15.39, the same price it was exchanging hands seven days ago. Over the past 30 days, NEAR is up by slightly over 100%.
Originally Published Here
