In a recent tweet, Mark Dow, a former IMF economist, hedge fund manager, made a stir on Twitter when saying that Bitcoin – the top cryptocurrency by market cap is dying.
In December 2017, just days after Bitcoin reached $20,000 in a jaw-dropping surge, Dow took to his blog to bash BTC. In a heading “So do you want to short Bitcoin? Here is your road map”, Dow said, lambasted cryptocurrencies for being situated in a bubble by using the age-old anti-crypto argument, before claiming that a dramatic correction could be bound to happen.
Mark Dow
He also revealed that many people who rushed to buy BTC didn’t understand the technology and were simply driven by the price narrative.
As we can see, the economist was right, really right. In the time after his blog post, the cryptocurrency downed to $15,000, then $12,000, after that $10,000, and lower and lower until it ended the year just $3,100. Dow had created the crypto short of the century, then he closed it, just three days after Bitcoin found its in “the bottom of the well”. Accordingly an interview, he shared that he didn’t want to ride it to zero.
The man is back again but follows a vengeance mentality. When BTC began dropping from $8,000 to $7,400 for the second time in some of the weeks, the hedge fund manager said that:
#Bitcoin will die a grinding death, punctuated by spoofs and FOMO spasms of decreasing frequency and intensity. $BTC $XBT https://t.co/Bz3ev060ru
— Dow (@mark_dow) November 21, 2019
The move occurred just a day after Dow revealed that the bearish price action is a clear sign that the “thesis of an echo-bubble unwinds, with occasional upside spasms & progressively weaker FOMO, just got a lot stronger”. Additionally, he is not the only investor who took part in a hedge fund that is skeptical of Bitcoin’s future in terms of price.
We’ll see if 200dma matters to #bitcoin. But truly strong assets don’t give back moves like the one up thru 10k, esp when they start from so far below ATHs
Thesis of echo bubble unwind, w occasional upside spasms & progressively weaker FOMO, just got a lot stronger. $XBT $BTC
— Dow (@mark_dow) November 19, 2019
Besides, Ryan Todd – a researcher of industry publication The Block, recently seeing that for the CME futures, Bitcoin short positions held by investors that are deemed “hedge funds” are at an all-time high with two-thirds of investors. Furthermore, the top eight long traders that according to the open interest calculations are 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
-HFs 2/3 of total short OI, close to ATH
-Top 8 long traders per OI at ATL pic.twitter.com/qvbqyHoCye
— Ryan Todd (@_RJTodd) November 19, 2019
A prominent cryptocurrency skeptic and gold bull, Peter Schiff, also said that the leading crypto asset is ready to up $1,000 in some next months.
#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.
— Peter Schiff (@PeterSchiff) November 21, 2019
Read more:
- Argentina: Central Bank Had Officially Prohibited Citizens From Purchasing Bitcoin Amid USD Crackdown
- Singapore To Allow Crypto Derivatives Traded On Approved Exchanges