Mark Dow Closes Short Position Against Bitcoin and Questions Wall Street Narrative
The recognized investor and chartist, Mark Dow, who has been a very skeptic on Bitcoin, has closed his profitable short position on Bitcoin that was opened back in 2017 when Bitcoin (BTC) was reaching $20,000, its all-time high. In the past, he said that holders will have to leave the market if Bitcoin dropped down to $5,000 or $6,000.
Mark Dow Increases His Cynicism Against Bitcoin
Dow explained that he saw that Bitcoin liquidity got worse as time passed. He has also shown that the CBOE, has plans to delist Bitcoin futures from its platform. The company did not inform why they have decided to stop offering Bitcoin futures. One of the reasons could be related to the low volumes that Bitcoin was experiencing in their platform.
All joking aside, since I had to roll my #bitcoin exposure each month last year, I saw that the liquidity got worse every time. Hard to buy the story about broadening institutional adoption when you see this. $BTC $XBT https://t.co/3gXFjwl5qc
— Dow (@mark_dow) March 14, 2019
He said that it was difficult to “buy the story” about institutional investors entering the market when the CBOE decided to stop offering Bitcoin futures.
His opinion is shared by many experts and commentators in the space. For example, Joe Weisenthal, a crypto-friendly Bloomberg TV anchor, said that the idea of crypto futures unleashing a wave of institutional money entering the space is
“one of the most busted narratives of the last year:”
Nonetheless, there are some institutions that are starting to pay close attention to the cryptocurrency market. This is the case of the University of Michigan, that has endowed the crypto space with an investment of $12 billion. Moreover, the University informed that they want to place a larger sum of money in the market.
At the same time, there are two pension funds in the United States that have decided to invest in digital currencies. Two American pension funds have purchased digital assets, something that Anthony Pompliano, Morgan Creek Digital co-founder and partner, mentioned in the past.
Fidelity Investments and the Intercontinental Exchange (ICE) are also working so as to provide solutions for companies and firms that want to place their funds in the cryptocurrency market. It is clear that virtual currencies have been in a bear trend since the end of 2017 and the beginning of 2018, but there are many reasons to think that the market will be growing in the near future and that institutions are paying closer attention to it.