After the end of 2017 and 1 months of this year during the heady days after the encryption currency down. The value of the most well-known encryption currency, bitcoin is currently the only the most high 1/5. (November 25th, the exchange price of bitcoin officially breakdown of $4000, and the beginning of a peak of $20 thousand compared to a decline of 80%. )
From darling to pariah
At 20:45 on November 26th, bitcoin transaction price of around $4043.3, barely recovered $4000 mark integer, but in the past 7 days bitcoin prices fell more than $1700, still more than 30% decline.
“Fortunately, we rush in bitcoins last week before the crash, has been clearing all encrypted digital currency positions.” An American hedge fund manager said. However, bitcoin fell so fast, still let him.
In the view of encryption digital currency research institutions ETORO strategist at MATI GREENSPAN, the hedge fund collective selling bitcoin is a departure, behind bitcoin this round of market crash.
“The current retail investors suffered heavy losses, almost no willingness to market dips, even institutional investors such as hedge funds now have abandoned, bitcoin can not encounter crash.” MATI GREENSPAN pointed out.
The hedge fund collective abandoned bitcoins also upset, because they found that retail investors admission investment will drop, regulators and delay in the release of bitcoin financial innovation brings arbitrage opportunities, making bitcoin trading profits increasingly lose value.
“Like many hedge funds, our internal bitcoin has three investment criteria, one is in the short term, bitcoin is difficult to become a world currency; two is the lack of practical application scenarios widely before bitcoin valuation is high; the three is the current capital drive is a key force support bitcoin valuation once, all capital leave, bitcoin prices will drop.” The American hedge fund manager said, this is the mid November when they found each capital departure signs become apparent when one of the basic reasons for prompt settlement of bitcoin positions.
In his view, bitcoin this rapid drop, is a digital encryption currency to strengthen supervision, BCH surface (bitcoin cash) caused by the hard currency circle bifurcation, constant internal friction and other factors, but they reflect the deep-seated reasons, is a large number of funds and retail investors views “consistent”, to support virtual admission the high price of bitcoin.
He said a year ago, hedge funds launched a bitcoin digital encryption currency investment boom, when many hedge funds see bitcoin money effect and hedge asset characteristics, on the other hand, think more and more block chain technology applications landing will continue to improve the bitcoin demand, and therefore have a lot of money to invest in bitcoin.
According to statistics, as of February this year, the number of hedge fund investment focus crypto currency exceeds 230, than in the past six months doubled, is 5 times of the beginning of 2017, a total of more than $5 billion in total assets management.
However, the hedge fund arbitrage ultimately failed to deliver the abacus. This year, 3 months, the national financial regulatory authorities in Europe and the United States will not allow bitcoin ETF listed, but bitcoin digital encryption currency financial derivatives innovation take an increasingly stringent regulatory attitude, resulting in bitcoin prices continued to fall and a large number of retail investors wait-and-see.
With bitcoin prices continued rapid drop, many hedge funds suffered Nintaus drain dilemma.
To set up in December last year bitcoin investment trust fund GRAYSCALE INVESTMENT as an example, when the encrypted digital currency investment fund by 2 times the market price to buy bitcoin (cash costs about $40 thousand today), in accordance with the bitcoin transaction price of $4000 is calculated, the net loss rate of close to 90%.
“This is not the case.” GENESIS TRADING CEO MICHAEL MORO told reporters that this year left behind bitcoin positions of hedge funds only this one performance loss generally above 50%, today fell below $4000 in bitcoin, accountability pressure they are encountering more and more LP, even a large LP don’t intend to all investment share redemption (including stocks, bonds, gold and other financial products, investment amount) as a punishment.
Where to bitcoin?
Of course, this is not the first time in the history of bitcoin fell several times plummeted in the past, finally ushered in a bigger rise. So, this time after the crash, bitcoin will repeat the last rebound? The coin is the circle game player who lives or do hunters?
Not long ago, Ma Yun publicly for the first time talking about bitcoin said: for bitcoin, I don’t have much interest, I want to know is, bitcoin can bring what society? But anyway, I think bitcoin for us to be very careful.
2013, from the beginning of the bitcoin 15 dollars all the way up to the end of the year topped $1200. This year is the China coin ring game player enlightenment, a large number of China game player is from 2013 began large-scale admission.
In December of that year, Chinese central bank, China Banking Regulatory Commission and other five ministries jointly issued the “notice” on guard against the risk of bitcoin, “said bitcoin is a specific virtual goods, does not have legal status and monetary equivalent, can not and should not be used as currency in circulation in the market. Five ministries also requires all financial institutions and Payment institutions may not bitcoin price for the product or service, not to provide customers with bitcoin related services. After the introduction of notice, bitcoin bitcoin prices have plunged 35%, sharply down, to 2015, bitcoin prices fell to $200, a year and a half or more than 80%.
The second half of 2015, bitcoin again a strong rebound in 2016, the annual increase of more than 260%. At the beginning of 2017, the price of bitcoin is to refresh the record highs. This time, China has become a major global game player of the bitcoin market, bitcoin transactions accounted for the proportion of global China from more than 9.
History always has amazing coincidence, after bitcoin hit a record high, Chinese regulators shot again. At the beginning of 2017, the central bank Shanghai headquarters and China respectively in Beijing and Shanghai interviewed three largest bitcoin exchange, the exchange and subsequent on-site inspection. This time, bitcoin prices within 8 trading days fell nearly half.
By September of last year, regulators formally decided to shut down the domestic bitcoin exchange, bitcoin prices diving wave appears again, and then quickly record, at the beginning of this year was more than $20 thousand.
From the past few years, several times fell bitcoin, largely from external pressure, especially the relevant regulatory and China. But this time, the collapse of bitcoin and no obvious external pressure, is mainly a return value after excessive prices.
Bitcoin this time crash, was something of a baptism of the coin ring game player loyalty. If bitcoin is still a religious belief, this is a godsend at the fall, if faith is shaken, it is important to escape.
(source: economic information Chinese)