Hedge Fund Manager that Shorted Bitcoin at $20,000 Says BTC is “Dying”
Bitcoin is Dying?
Nearly two years ago, just days after Bitcoin tapped $20,000 in a jaw-dropping surge, Mark Dow, a hedge fund manager and chartist, took to his blog to bash BTC. In an entry titled, “So You Want To Short Bitcoin? Here’s Your Road Map,” Dow, using the age-old anti-crypto argument, lambasted cryptocurrencies for being situated in a bubble, before claiming that a dramatic correction could be bound to happen.
As you likely well know, the American investor was right. Extremely right. In the months after his blog post, the cryptocurrency fell to $15,000, then $12,000, then $10,000, and lower and lower until it ended the year just a smidgen above $3,000. He had made the crypto short of the century, then he closed it, just three days after Bitcoin found it’s ultimate bottom.
Dow is back again, and he’s back with a vengeance. After BTC began dropping from $8,000 to $7,400 for the second time in a matter of weeks, the hedge fund manager and popular Twitter analyst/commentator said that he expects for the cryptocurrency to “die a grinding death, punctuated by spoofs and FOMO spasms of decreasing frequency and intensity.”
This came a day after he said that the bearish price action is a clear sign that the “thesis of a echo bubble unwind, with occasional upside spasms & progressively weaker FOMO, just got a lot stronger.”
Dow isn’t the only investor involved in a hedge fund that is skeptical of Bitcoin’s future in terms of price.
Ryan Todd, a researcher at industry publication The Block, recently found that for the CME futures, Bitcoin short positions held by investors that are deemed “hedge funds” are at all-time highs, with two-thirds of investors. To add to this confluence, the top eight long traders according to the open interest calculations is at all-time lows, suggesting a relatively strong bearish bias.
Data is a bit stale (Fri, from values printed Tues), but interesting to see the "smart money" trading CME $BTC futures crowd into a short-trade:
-Hedge fund net short open interest (SOI – LOI) is at ATH
Similarly, Peter Schiff, a prominent cryptocurrency skeptic and gold bull, believes that the leading crypto asset is poised to tank to $1,000 in the coming months. Per previous reports from Ethereum World News, the investor said on Thursday:
Bitcoin is nearing the neckline of the head-and-shoulders top I pointed out before the Oct 25th 40% pump. The right shoulder is now shrugged and the neckline slanted and parallel to the shoulders. If it breaks the price objective for the dump is $1,000 to complete the pattern.
Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of EWN or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.