We all know how devastating the cryptocurrency bear market was last year. Now, Polychain Capital’s report of Q4 2018 is here to show us just how devastating it actually was.
The crypto hedge fund saw its assets shrink from $1 billion USD to around $590 million USD during the last three months of last year.
This represented a drop of 40% of the price of the company’s assets. Rather than investors redemption their assets, the main reason for the assets losing so much value was the bear market. During this time, Bitcoin also dropped over 30% and some altcoins lost even more value at the same time. This made the entire crypto market lose 50% of its value in only three months.
Polychain Capital was created in 2016, way before the last bull run, so the company had plenty of time to enjoy it and was possibly not so negatively affected as some other companies that did not survive last year’s bear market.
Many companies had to close down (some are still doing it, like Thor Technologies, which shut down this week) or firing several employees (like Steemit and ConsenSys, for example). Because of this, it looks like Polychain Capital was not even the worst company during the apocalypse that was the bear market.
Recently, the fund has been investing in stablecoins, which makes sense now that volatility has basically killed the price of so many of its current assets. One of these companies is Celo. Another investment was in Coinflex, a cryptocurrency exchange. Crypto exchanges were another market that remained strong last year, despite the bear market.
Recently, several investors are focused on the future, as there are many rumors saying that the bear market is about to end for good. As soon as this is confirmed and the next bull run starts, the market will finally be ready to flourish once more.