On this Monday Bitcoin rate has significantly fallen, and managing partner of Kenetic Capital hedge fund Jehan Chu is sure that strong price fluctuations are still going to be.
“Whole the macroeconomic stability is suffering now. Markets are falling, creating a chain of negative moods. This also provokes sales on the cryptocurrency market. We do not watch anything new, BTC has always been vulnerable to short-term volatility”, — he claimed.
Wherein, Chu notes that bull factors present, as well: weakness of global economy, oil collapse, coronavirus panic — all these factors push people to consider Bitcoin as an available investment asset.
“Along with the halving of the reward, the likelihood of a sharp turn and rise increases”, — Jehan Chu says.
CEO of Global Macro Investor analyst company Raoul Pal has the same opinion. He also thinks that BTC still may decrease.
“There is a feeling that all holders of long-positions at Bitcoin hedge funds are forced to eliminate them. VAR does not take prisoners”, — he says.
VAR or “value at risk” is a criterion of evaluation of potential losses in the future with the selected probability of the analyzed period of time. It is used to calculate necessary capital reserve. VAR often forces assets` managers to reduce risks amid increased volatility.
As well as Chu, Pal believes that investment attractiveness of Bitcoin begins rising, when investors will start searching for alternative financial systems. But he said nothing about timeframes.
“Current events on the market may speed up the emergence of the need for a new financial system. Finally, this will result digital revolution”, — Pal added.