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.