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The Death of Crypto Has Been Greatly Exaggerated, Again

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curious page Hiding in the folds of the internet declaring Bitcoin dead over 460 times.

According to calculations on its website, cryptocurrencies have been defeated 24 times so far this year, after dying 47 times in 2021 and 14 times in 2020. That mortality rate he peaked in 2017. Handled in December, five days later he was below $11,000, losing 45% of its value. Cryptocurrencies apparently met their demise more than 124 times that year. Perhaps only Prometheus is defeated multiple times and only regenerates.

I’ve been following this so-called “bitcoin obituary” page for years, mostly because of its satirical value. The website clearly states what constitutes the “death” of Bitcoin, stating that the cryptocurrency can only be used if “a person with a prominent following or a site with a large amount of traffic” so declares. may be officially considered dead. What is clear from this page, which has been diligently chronicling cryptokills since 2010, is just how many violent ones are taking place in the burgeoning cryptosphere. Even if feuds, billion-dollar losses, regulatory crackdowns, or speculative mania take hold, its most popular assets aren’t ready. , that’s why one critic In other words, just die.

Of course, crypto is not limited to Bitcoin, but the mood surrounding the latter can be a good measure of the former. It is strongly correlated with the rise in the price of Bitcoin, the most voraciously traded of all. According to this year’s annual report, that rule will continue through 2022, marking the lowest number of new crypto hedge funds entering the market in five years. Investigation of the sector by PwC.

The study showed that there are potentially over 300 cryptocurrency hedge funds active around the world, with half having been launched in the last three years. Those who survive the 2022 crypto catastrophe will have bragging rights for years to come. Also, there is another arrow in the quiver. It’s more money.

According to PwC, average assets under management for cryptocurrency hedge funds will be $58.6 million in 2021, up nearly 60% year-on-year based on the same sample set of funds, and the $20 million threshold is firmly underway. is higher than Critical mass for traditional hedge funds. In other words, crypto hedge funds have been well capitalized this year, and many are expected to weather the turmoil.

Krypto’s outrageous refusal to die has infuriated many, and there is no shortage of vehement opinions. “All maniacs end the same way, making sharp corrections that collapse prices like Trump’s house… In short, greed is fear until it’s too late for anything but panic.” is another case of denying the report Earlier this month, the Brookings Institution, a nonprofit think tank in Washington, announced the “cryptomania” crisis.

However, this washout should not be called a panic. Not so sudden, not so fleeting. That’s almost a year ago, after months of grind and volatility undermined by disastrous price volatility that has pushed crypto more and more away from his $3 trillion high, which was recorded in early November 2021. It is more appropriate to be called Around the same time last year, the Bitcoin market cap also hit a record high of $1.28 trillion. Far from that perch now, hovering at $370 billion, he traded just over $19,000 last month.

Brookings found that the soaring prices, dubbed the “pandemic era of the bubble,” were partly due to “excessive monetary and fiscal impulses in the core economy,” but that the “information industry” with the weakness of disruptive innovation It has placed a lot of responsibility on “investors who do not have A thirst for easy, illusory gains, and a blind faith in paradigm shifts, “will likely sustain momentum over time, often conveniently flavored with abundant global liquidity.”

And it’s not just about kicking cryptocurrencies when they’re down.Much of the financial industry has been quieter than ever, albeit far more indifferent, as it has been forced to get along with its crypto-centric clients and partners. Avoiding financial sanctions when Russia invades Ukraine Wall Street’s personal grievances were palpable when the use of cryptocurrencies by bad actors surged because of. No, according to recent information reportnot surprisingly, crypto proved not to be liquid enough to facilitate massive sanctions evasion. He raised donations to Ukraine to help the Ukrainian government purchase military equipment and medical supplies desperately needed.

This is not to say that cryptocurrencies should be allowed unbridled and barbaric hegemony. Perhaps one of the most compelling critiques to emerge this latest crypto winter is letter Google, Microsoft, Amazon, Facebook/Meta, Massachusetts Institute of Technology, University of Pennsylvania, University of California, Berkeley, and many others.

“The catastrophes and externalities associated with investing in blockchain technology and crypto-assets are not isolated, nor are they nascent technology growing pains,” the letter states. “They are the inevitable result of technology that was not built for a purpose, and will forever remain unsuitable as the basis for large-scale economic activity.”

The group urged lawmakers to act quickly to improve oversight of fintech, saying, “Crypto assets . To avoid exposure to predatory financial, fraud, and systemic economic risks.

Letters like this, combined with a steep drop in cryptocurrencies, rising interest rates, inflation, fears of recession, and a staggering spate of burnouts, bankruptcies and frauds this year have made institutional interest in cryptocurrencies permanent. should be sufficient to effectively inhibit digital assets. But it’s not. While individual investors have been gutted and rightfully chastised, institutional investors are (surprisingly) actively looking for the next entry point into the market, and the final jackpot is yet to be seen. I’m sure not.

The Brevan Howard Digital Asset Multi-Strategy Fund, the crypto- and digital-asset-only arm of a $25 billion UK hedge fund, has raised over $1 billion from institutional investors as of this summer, its largest ever. is one of the crypto hedge funds in the market and is easy to launch. Defy the crypto doldrums.

Besides, Institutional investor BH Digital, which oversees Brevan Howard’s cryptocurrency trading, is no longer actively raising capital, but has reportedly invested in the fund, which was launched in January, according to a source familiar with Brevan Howard’s crypto fund. We are still seeing throngs of institutional investors eager to join. Wall Street sources involved in matching clients say many investors are still considering allocations, and BH Digital could easily could reach $2 billion.

Approximately 85% of Brevan Howard’s crypto funds are raised from funds of funds, family offices, high net worth individuals, pensions and endowments (roughly in that order), with Brevan Howard About 15% is donated to virtual currency. -Trading unit.

BH Digital, which began operations in September 2021, will impose rigorous controls, institutional governance, risk management, and crypto-market-specific expertise while adhering to the “breadth of diversity brought about by the structural disruption and innovation of blockchain technology. We propose to invest in “opportunities”. Brevan Howard employs his team of over 60 people, a portfolio of his managers, analysts, quants and data his scientists located in his eight offices around the world.Already, the fund has a good reputation circulate with agility Worst crypto loss of the year.

Jeff Howard, head of North American institutional sales and business development at OSL, a Hong Kong-based cryptocurrency broker and exchange, said the enthusiasm of institutional investors to continue investing in crypto It states that Howard’s success is not the only one. “Institutional investors are now very bullish about crypto heading into the fall,” he says. “They are happy to sell because it removes leverage from the market and presents a good entry point, especially those who do well.”

According to Howard, August and September were “two of the busiest months of the year” for OSL, with institutional investors leading the way, up 250% over the same period last year. , is a far cry from the massive cryptocurrency trading volume seen from February to June. It reached $220 billion per month. So far, his October crypto trading volume through OSL was just over his $180 billion, with retail investors leaving the market and institutional investors cautiously re-entering.

According to Howard, a major stumbling block for cryptocurrencies remains timing the market amid rising prices, as institutional investors take a tactical approach. It is,” he says. “It will be difficult for cryptocurrencies to go up because the uncertainty is so high. There are many mixed messages.

Meanwhile, falling prices have allowed crypto investors and businesses to use the downtime to plan for new growth phases. “Private trading firms, market makers, hedge funds, I talk to them all,” Howard says. “And they are actively growing their cryptocurrency business now.”

As one industry source puts it, the new year is off to a fresh start, with some clarity in the direction of the market and by 2022, successful existing funds “we did, we didn’t.” We hope to provide you with the opportunity to say Even blowing it up, we are configured to survive the cryptocurrency meltdown. “

So if they make it through to 2022. In cryptocurrency time, months are equivalent to thousands of years.


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