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. Continue reading

Advertisements

Bitcoin’s thousand dollar jumps exploding to just days

As bitcoin approaches $10,000, it needs to do it quickly, since it took seven days to move from $8K to $9K.

As I wrote Monday, the cryptocurrency is exploding to the upside with a 30% move in two weeks that ended Sunday night.

The chart below shows the speed bitcoin has exploded through the $1,000 milestones. Continue reading

Dimon trashes bitcoin, but is OK with CDSs

JPMorgan’s chief Jamie Dimon in a seemingly unprovoked response took on bitcoin again Tuesday at banking conference in Manhattan.

Tuesday, America’s shadow president as some have called him, belittled his daughter in order to trash bitcoin. Dimon said that his daughter purchased some bitcoin, concluding “it went up and she thinks she is a genius.”

But he went on to say he would fire any trader who bought bitcoin just for being stupid.

It’s a shame Dimon did not have the same outlook when it came to his tradersĀ  buying credit default swaps in London in 2012 when the bank lost more than $7 billion on the London Whale trade.

Look, I’ve met Jamie Dimon, and interviewed him. He has strong opinions on government and regulations. He makes no bones about how great America is and he does not suffer fools lightly.

And to be honest, he could be dead on with bitcoin. It’s not a great stretch to think governments would crackdown on untaxable money moving around the globe, but let’s not forget that Dimon has written checks totaling more than $21 billion in penalties and fines to Uncle Sam because his traders were stupid with packaging mortgages or manipulating commodities during and shortly after the Great Recession.

While bitcoin has fallen below $4,000 since his statements, bitcoin is up a mere 1,100% since the JPM chief trashed it in 2015 at the same conference. Dimon admitted he does not know how high the crypto could go before the crash saying, “it could hit $100,000 before it drops.”

There’s no way to know who will be right on any investment, and yes there will always be pain when markets crash. But for Dimon to say bitcoin is a joke and compare it to the tulip craze is so far off base, since his firm is using blockchain technology right now andĀ  developing it for broader applications.

For a man who hates government over regulating banking, his words on a crackdown in the crypto space ring hollow to me.