Bitcoin (BTC) has seen quite the past 24 hours. The cryptocurrency saw two 8% moves in a single day, one to the upside, the other to the downside, then a 4% jump higher within a couple of minutes to put a cherry on the trading day.
While this daily move has largely been neutral, in that Bitcoin ended the day effectively where it started, a leading investor has taken the time to double down on his bearish narrative after Wednesday’s volatility, reminding his followers that he expects Bitcoin to die a grueling death.
The individual in question is Mark Dow, a hedge fund manager and chartist, that famously shorted the $20,000 BTC top and rode the short position as 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 macro bottom.
Then he fell silent on Bitcoin for a while, until last month anyway. Last month, he remarked via Twitter 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 an echo bubble unwind, with occasional upside spasms & progressively weaker FOMO, just got a lot stronger.”
Dow doubled down on these assertions on Wednesday, writing “Reminder” and referencing his previous comments about Bitcoin’s “grinding death” in a tweet poking fun at cryptocurrency bulls who started to feel FOMO after the strong impulse move higher seen earlier that day.
The fundamentals would beg to differ though. Spencer Bogart, a partner of top industry venture capital firm Blockchain Capital, took to Bloomberg Monday to discuss reasons why Bitcoin’s long-term bull trend of strong adoption remains intact.
One of Bogart’s first points conveyed to the Bloomberg audience is that Bitcoin remains a very useful network from a transactional standpoint, “processing $1 billion to $3 billion worth of transactions daily,” which is a far cry from when the cryptocurrency was deemed “a joke” just years ago.
Next, he looked to the growth in and adoption of a number of Bitcoin and cryptocurrency fiat on-ramps into the industry, specifically looking to his firm’s portfolio companies Coinbase and Kraken as a way to back his point.
Lastly, Bogart drew attention to a survey that his company ran earlier this year that was focused on gaining insight into the American public’s thoughts on Bitcoin as an investment.
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