• Hedge funds are investing in cryptocurrency

  • Many of the world’s most prestigious hedge funds are ramping up their investments in blockchain and cryptocurrency.

    FTX, an Antigua-based crypto derivatives exchange, closed a record $900 million financing last week, valued at $18 billion. Paul Tudor Jones, Alan Howard, Third Point, and Millennium were among the hedge fund heavyweights who took part in the funding. FTX has swiftly established itself as a serious competitor to Coinbase and Finance. FTX boasts over 1 million customers, ranging from ordinary investors to sophisticated day traders, family offices, and seasoned institutional traders, and averages more than $10 billion in daily trading activity.

    To recap, blockchain technologies, specifically Bitcoin, allow users to construct a system for exchanging value without the use of a third-party intermediary. Obtaining ownership of blockchain technologies, according to proponents, allows participation in a massive and vital computing network in development.

    Concerns over the strength of the economic recovery weighed on risk assets this week. Over $89 billion was wiped off the cryptocurrency market in a 24-hour period at one point early yesterday. As a point of comparison, global cryptocurrency assets surpassed $2 trillion for the first time in April.

    In the crypto world, Bitcoin has the highest market share. Bitcoin’s price has dropped by more than half after reaching an all-time high of about $65,000 in mid-April. It is still up 2% for the year at $29,730, as per yesterday’s price. Bitcoin is expected to be on the downside of a technical head and shoulders formation, according to market analysts. Many predict that the upward price trend will resume in the next 12 months, with prices ranging from $50,000 to $100,000.

    Cryptocurrency is often accumulated by non-hedge fund knowledgeable investors over a multi-year period with dollar-cost averaging. Individuals should invest 1% and institutional investors should invest 1-5 percent.

    The majority of cryptocurrency is uncontrolled. “Waiting for Gensler on crypto has turned into the Wall Street equivalent of Waiting for Godot,”. Many people are wondering when the federal government would intervene, especially since cryptocurrency appears to be the currency of choice for criminal behavior. The US Department of Justice, for example, confiscated $2.3 million in cryptocurrencies paid to ransomware extortionists Darkside in June.

    As cryptocurrency becomes more widely used, banks stand to lose a lot of money. Commercial banks and central banks are responding by developing their own digital currencies, which are not cryptocurrencies but fiat currencies.

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