In the past four months alone, 116 different hedge funds have arisen to trade in cryptocurrency. That puts the global number of crypto-based hedge funds at 226 and counting. Needless to say, these traders haven’t been scared off by the high volatility in the cryptoeconomy over the past several weeks.
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts
Impressive Gains on Average
Per a new analysis from research firm Autonomous NEXT, the amount of hedge funds directly involved in cryptocurrency trading have been exploding by the week recently.
For perspective, there were only 37 crypto-based hedge funds at the beginning of 2017. By August 29th, that number had risen to 55. Things really took off from there, as there were 110 funds by October 18th and now 226 as of today, February 15th.
That’s an upward trend that doesn’t look to be going anywhere any time soon, even with the market crash and steady recovery of the cryptoeconomy as of late. The chop’s been real, as these same hedge funds lost 4.6 percent on average in January 2018.
Most are up big time, regardless. The average increase for cryptocurrency hedge funds started last year has been 1,477.85 percent so far — definitely enough to attract further trailblazers.
$6,000 USD the Bitcoin Bottom?
Professional and amateur traders alike are wondering if bearish trends have finally given way to bullish momentum.
Bespoke Investment Group suggested as much in a Valentine’s Day note, in which it suggested that “Bitcoin seems to have found an initial bottom around $6,000, which is right at the levels it was trading at prior to the post-Thanksgiving parabolic move.”
The group went on to say that the acute price rally “is also bullish because it marks the break above the top of the most recent downtrend channel. It’s important that $9,000 now holds as support going forward.”
In another words, just another day in the cryptoverse.
What’s your take? Would you start your own cryptocurrency hedge fund if you could? Sound off in the comments below.
Images via Business Insider UK, CNN