Former International Monetary Fund (IMF) economist Mark Dow, who opened a BTC short at the peak of last year’s rally, has finally closed his position – sending a strong signal that the market could have finally hit bottom.
“I’m done. I don’t want to try to ride this thing to zero. I don’t want to try to squeeze more out of the lemon,” he said in an interview with Bloomberg.
He went on to suggest that he has noticed certain aspects of people’s perception to cryptocurrency changing – in a similar way to how the hype last year told him to short.
“People buy into these assets because they believe the narrative, and you look at the asset prices to see if the narrative is weakening or changing,” he continued, although he did not specifically say that he is now bullish or that he has opened a long position.
The recent bullish rally that has seen $20 billion added to the cryptocurrency market over the past three days has certainly given investors reason to rejoice, but is it just Christmas fever prompted by memories of last years epic bull run?
Ethereum (ETH) has broken back above $100, a significant psychological support level and while some reversal is beginning to show, many assets are up by almost 20 percent this week.
EOS is leading the charge with huge 38 percent gains over the past seven days (30 percent in just the past 24 hours), taking it to 4th position by market cap. Litecoin (LTC) is close behind with 25 percent gains in the week and XRP is up 20 percent, along with the recently consolidated ABC fork of Bitcoin Cash (BCH).
Lagging behind are Stellar (XLM) and Bitcoin (BTC) with only 3 percent and 6 percent gains respectively. Currently, the only digital asset in the red is the other Bitcoin Cash hard fork, Bitcoin SV, with a 3 percent decrease in value.
There are still a number of factors that could sway the market in either direction, most notably manipulation and “pump ‘n dump” schemes. Bitcoin miner and investment banker Nic Puckrin recently wrote an article for CCN explaining ways in which institutional investors can, in fact, be bad for the market in the long-term and how we can work to reduce the harm.
In another article from The Star, the publication highlights research into the prevalence of pump ‘n dump schemes in the cryptocurrency market from January to June this year – although this will hardly be news to those deeply entrenched in the community. It points out how lack of regulation allows perpetrators of P’nD schemes to operate transparently and without fear of reprisal.