TD Ameritrade Trading Strategy manager- Shawn Cruz was in a talk with Nasdaq Trade Talks in a YouTube video. Cruz said that the TDA clients are gaining trust in Bitcoin again after the cryptocurrency went below the mark of 4000 U.S. Dollars, recently. In the talk, he further added-
“I would say that the whole space is really in its infancy right now. It makes sense you are going to see a lot of volatility there. It is really driven by sentiment. […] There is a lot of players coming into this space experimenting with different use cases. But right now I think Bitcoin has been something that has been center stage. […] At TD Ameritrade, we offer Bitcoin futures trading for our clients. We saw them get very interested when we volume spiked when it was around $10,000. On this pullback lower, there really was not much activity from our client base. But now that we are getting down to this 3 or $4,000 price level on Bitcoin, we are starting to see our clients become more interested in trading Bitcoin again. So I think it is going to be interesting to see what Bitcoin does from here.”
The TDA manager also pointed at another pattern. Cruz said that the clients’ interest in Bitcoin soared as the downturn of the NYSE was seen during December last year. As per Cruz’s comments, one can deduce that with the beating of the stock market, there should be an increase in the Bitcoin’s demands too. The TDA manager further added-
“It is really interesting as we are seeing this volatility in the market. Watching the ebb and flows of money. Watching where it is flowing out of and where it is flowing into is something that if you are a market spectator, someone who really likes to pay attention to these rotations in and out of asset classes. Right now I think you are getting a really enormous amount of data.”
If we look at the average of all the main socks we will find that the world’s largest cryptocurrency Bitcoin does diverge in major ways and that too very frequently. One can say that the Bitcoin is ‘sentiment driven’ cryptocurrency. The general pattern is that the heavy indulgence of people in the cryptocurrency drives the rates of the digital currencies, which gives birth to sell off days. The year 2017 was a good example of this pattern.
In Nasdaq Trade Talks the manager further explained that the very emergence of ‘Bitcoin Futures’ trading was a direct result of clients’ demand for TDA. He also pointed at the various other factors that help in pushing the elements further. He emphasized on the importance of liquidity and that it should be regulated on a crypto exchange. Cruz explained that the company offers the Bitcoin Futures based on these basics. He further added-
“We have actually an investment in the ErisX exchange. That is another way for us to one, give our clients access to this asset class on a regulated exchange. And it is also going to bring them more products that are cash and future related products.”
Along with interest in Bitcoin, the clients of TD Ameritrade have also shown interest in other cryptocurrencies. Although the company is taking a focused approach. There too aspects like liquidity and regulations are critical key factors. Mainly one can find that the liquidity in crypto assets can be found in the other cryptocurrencies. As per the reports from CCN, ‘the closest thing to fiat exchange for many cryptocurrencies is a stable coin market.’ Cruz also pointed at another factor that led to the market chaos in December last year. He pointed at the traditional stocks’ fluctuation in the liquidity and the interest rate cycle.