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Soros to enter Crypto market – our assessment

07/04/2018

After notably referring to cryptocurrencies as a ‘bubble’ as recently as January, the news broke yesterday evening that Soros Fund Management will throw some of their considerable financial weight into cryptocurrencies, so what does this mean for investors ?

If there is one tenet that has consistently created wealth for George Soros it has been the pursuit of value. As we have previously mentioned here, Bitcoin (BTCUSD), arguably the bellwether of crypto health, does not inspire confidence. The market is generally long and suffering, and the vulnerability of long BTC holders to being squeezed out of their positions should be obvious, and this fact is unlikely to be missed by one of the most successful investors of our times.

Anyone holding crypto can forget any fantasies about George Soros undergoing a Damascene conversion and now becoming a fan. The prospect of Soros money suddenly building long positions and creating a demand that vindicates all the more optimistic predictions of crypto-evangelists is simply incompatible with his known modus operandi. It is considerably more likely that it will be the fate of cryptocurrencies to be sold down to a level where value can be extracted – and in the case of Bitcoin it’s a long way from here…

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