Bitcoin prices may be settling down in a smaller 16 points range inside the 50 points range between $550 and $600. The cryptocurrency spent all of this week inside this congestion area and BTC/USD recently retested the $572.50 low only to get swiftly rejected. One bitcoin is currently trading at $581.10, right in the middle of this range. A clean break above $588 may carry prices toward $600. Higher up, $633 and $650, followed by the June 3rd swing high at $667 may provide some resistance. The $667 figure will be especially important for bitcoin bulls. This was the end of the May BTC rally, a move higher may reignite a fresh bull run.
A break below $572 may lead to BTC retesting the triple bottom at $550. Below $550, the round psychological level at $500 will act as support. Keep in mind however that the smaller range between $572 and $588 is only four days old so not as important as the larger 50 points congestion between $550 and $600.
Hedge Funds Getting Into Bitcoin
It has been a bumper year for bitcoin. By mid-June, VC investments in BTC related companies skyrocketed to $130 Million, surpassing the $88 Million for the entire 2013. The virtual currency got accepted by major US retailers like the DISH network and Dell computers. The adoption on the customer side is also continuing unabated, the number of bitcoin wallets is on a constant trend up. Now Hedge Funds are starting to enter the bitcoin arena! Here are just three of the hedge funds looking to capture a part of the BTC market in 2014.
Pantera Capital
Pantera Capital is run by Dan Morehead, a former chief financial officer and head of macro trading at hedge fund Tiger Management. The fund has $150 Million under management. Pantera has funded several bitcoin start-ups in the last few months.
Global Advisors Bitcoin Investment
The Global Advisors Bitcoin Investment Fund officially launched on August 1st. The fund is run by Daniel Masters, a former energy trader at Shell and JP Morgan. GABI is based and regulated in Jersey, a small island of the coast of the UK and a British Crown dependency. The fund has not publicly disclosed the size of its assets.
Binary Financial
Binary Financial recently participated with $20 Million in a new funding round for ASIC manufacturer BitFury. The chairman of the fund is Jonathan Teo, who led investments at Twitter and Instagram.
