I think this is the reason bitcoin rose from $1000 in Jan 2017 to about $10,000 now. It's down to this wall of hedge fund money.
It has to be a large contributing factor, hedge funds will bring big money and it will only continue to grow with cryptocurrencies.
It was clear for all to see that new money was coming in from somewhere. What's surprising is if it was hedge funds that they would buy things with such ridiculous strategies and impatience. If we can attribute what happened in December to them then it would seem that many bought at an ATH.
I would think that what happened is that hedge funds entered the market and started the frenzy, then the smaller fish did all of the buying at the ATH before the big dip
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LONDON (Reuters) - Hedge funds focused on trading cryptocurrencies have struggled to eke out returns this year amid a sharp sell-off in the highly volatile market, in spite of a flood of new funds setting up to deploy investor cash.
I believe most of them are not in for the quick profits, so no, they have not "eke out" any returns this year. But this is the best time to look for discounts if they are going to hold for the medium to long term.
I would expect that any hedge fund looking to enter in to the crypto market will be well diversified so that it can cover any crypto losses in other markets. Alternatively you'd think any that are purely in crypto would ensure that there are quite strict restrictions on the frequency of withdrawals, so that they are afforded the freedom to ride out any potential bear markets.
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The number of crypto hedge funds more than doubled in the four months to Feb. 15, data from fintech research house Autonomous NEXT showed on Thursday.
Yes, the 2nd wave, or is it the 3rd, of the Bitcoin "gold rush" is still coming. Better buy the next dip if you missed the last one.
You won't be rich by selling now.
I don't remember myself exactly but I'm fairly sure that institutional investors were 1 or 2 back from mass adoption.
