Market review, February 5, 2020

2020-05-02 14:17:37

Stock markets yielded good returns in 2019, but cryptocurrency hedge funds ended the year even better.

According to statistics from Eurekahedge and HFR, traditional hedge funds earned an average of 10.4% over the past year, while cryptocurrency funds account for 16.33%.

However, cryptocurrency funds remain incredibly volatile. In 2017, the Eurekahedge cryptocurrency hedge fund index grew by 1708.5%, and in 2018, it fell by 70.27%.

The historical high profitability of cryptocurrencies and their potential for further growth attract high-risk investors. This opinion was expressed by the head of Galaxy Digital fund management, Steve Kurz.

Bitcoin shows the highest returns on an annual, three-year, and ten-year period,” he said in a conversation with the Financial Times.

According to Chris Zuehlke, director of global development for the Cumberland cryptocurrency fund, banks will join the industry anyway. Alternatively, they can provide broker services, enabling their customers to reach liquidity providers.

Founders of Galaxy Digital and Cumberland are well acquainted with the principles of functioning of traditional markets: Galaxy Digital founder Mike Novogratz was a Goldman Sachs partner before, and DRW, which launched Cumberland, is focused on a vast investment space.

In November last year, Galaxy Digital presented a report for the third quarter, according to which the company’s revenue for the first three quarters of 2019 amounted to $58.4 million, which is 133% higher than the same period of the previous year.

Technical analysis of Bitcoin (BTC):

Over the past day, the price of bitcoin rose to the resistance level of $9,450. Now, it is $9,430. In the future, we expect the continuation of the upward movement. The nearest resistance levels are $9,450, $9,500, $9,800, $10,000. The nearest support levels are $9,200, $9,000, $8,720, $8,500, $8,380, $8,250, $8,140, $8,000, $7,900.

Technical analysis of Ethereum (ETH):

Over the past day, the price of ethereum rose to the resistance level of $198. Now, it is $197. In the future, we expect the continuation of the upward movement. The nearest resistance levels are $198, $200, and $213. The nearest support levels are $195, $192, $190, $182, $180, $178, $175.

Technical analysis of Ripple (XRP):

Over the past day, the price of ripple grew to the resistance level of $0.2810. Now, it is $0.2750. In the future, we expect an increase. The nearest resistance levels are $0.2810, $0.29, $0.31. The nearest support levels are $0.2710, $0.2650, $0.2580, $0.2530, $0.2450, $0.24, $0.2380, $0.2360, $0.2320.

Disclaimer. This review is only for information purposes and cannot be considered as a proposal or an indication to perform certain transactions in the financial and commodity markets. The estimates and recommendations in the review are the personal opinion of the company's analysts. The company's view on the prospects for individual financial instruments is valid as of the date of the report. The Company does not assume any liability and liabilities for compensation for damage that may result from the use of this report.
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