As the bear market has continued through the first half of 2018, expert opinion is frequently called for, to understand trading conditions and strategies which still have the potential to deliver alpha returns. Bitbull Capital CEO Joe DiPasquale has been consulted by many media outlets, seeking to help their readers make sense of the crypto investment space during these challenging times.
In a recent interview for Blocktribune, Joe stated:
“When considering strategies for navigating a volatile market, there are two tried and true strategies: directional and non-directional.
“Directional strategies are driven by the belief that an asset’s value will increase or decrease. The introduction of bitcoin futures in late 2017 brought with it the opportunity to bet against the seemingly unstoppable momentum the crypto asset markets were building. Shorting bitcoin futures is one way that investors have managed to hedge against the downturn and secure a profit despite a generally declining market. Some quantitative strategies, including those that use predictive data leading them to believe a crypto asset price will increase or decrease, are also directional.
“Other directional strategies include early-stage investments like pre-ICOs or trading crypto assets early in their development. Despite the global market cap being down roughly 60%, there are projects that have launched during the first half of 2018 and significantly appreciated in value. Typically, the earliest investors in these projects stand to gain the most profit, but also face the greatest level of risk. We have also seen a strong shift towards private sales over public sales, for those with access to these projects, this can be a solid way to secure a profit”
He also talked about the potential for arbitrage within the crypto markets:
“Beyond the traditional inter-exchange arbitrage, where you buy a token on one exchange and sell it at a premium on another, there are also triangular arbitrage opportunities to be found within the various trading pairs. As an example, you might see that the fiat value of ADA is several cents lower when purchased with ETH vs BTC. You can then purchase your ADA with ETH, sell your ADA for BTC, re-purchase more ETH with your BTC and repeat this cycle until it is no longer profitable”.
Thus the Blocktribune readers were invited to explore a number of ways they could potentially make money with their crypto regardless of market conditions - along with the cautious caveats that this was in no way financial advice or recommendation from the author.
Joe was also consulted by Forbes, following the Bithumb exchange hack earlier this summer, which had less impact on the market pricing that previous similar attacks had been known to create. His understanding of the bigger picture helped readers to understand:
"The Bithumb hack was smaller than several other recent hacks, which may have reduced its impact on the spot price."
He emphasized that "Bitcoin's price is already hovering slightly above proven support levels in the low to mid-$6,000 range."
"If this hack had taken place when Bitcoin was starting to mount a comeback - say in the mid $7,000 range - then a sell-off would have been more likely. As it stands, the crowd that is purchasing Bitcoin at this price seem to be more resilient to bad news than the band-wagon crowds that a run up in price tends to attract."
Joe had already indicated to Forbes earlier this year that the pricing bottom for Bitcoin may not yet have been reached, and he continues to be a source of experienced advice to whom commentators may turn for reassurance in times of need.