Some fund managers came in on bitcoin dip

As I wrote Wednesday, hedge funds — struggling to get returns that beat the overall stock markets — came into bitcoin after the crypto broke the psychological $10K barrier to the downside.

These once high-flying fund managers are having trouble raising funds after posting sub par returns over the last three years.Two fund managers I spoke to Wednesday said they were monitoring bitcoin pricing as it moved below the $10K line in the sand.

“We wanted to see if there was support before we jumped in, once it [price] held we began buying slowly,” one fund manager told me.

There was also some dollar-cost averaging for another manager.

“We got in late, so we bought in the $9.9K range to drop our average exposure. Believing of course the price will rebound.”

As sun comes up in NYC bitcoin is trading at $11,550, which may be a temporary top according to a chartist on the asset side for a fund manager. “The technicals — if there is such a thing in bitcoin — shows the leg up may not have much more to go, today.”

He suggested that could be a temporary top in the trading range for the short term. But he also pointed out that typical technical analysts in bitcoin has little correlation.


One thought on “Some fund managers came in on bitcoin dip

  1. Pingback: Bitcoin may hold $12K bottom Friday: Chartist | Gray's Economy

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