Prominent Trader Noted for Major Bitcoin Short Position Issues Fresh Caution to Optimistic Investors

Renowned global macro investor, Mark Dow, has recently sounded the alarm for enthusiasts of Bitcoin through his social media presence.

Dow points out that Bitcoin’s inability to recover the $60,000 mark is a “worrisome signal” for its advocates.

Dow is known for his strategic bet against Bitcoin at the end of 2017, when the preeminent digital currency was at the height of that year’s bull run, surrounded by tremendous fervor. He astutely closed his significant short position by the end of 2018, just as Bitcoin had tumbled 80% from its highs. Dow explained to Bloomberg that he opted not to “overextend the gains.” This move proved timely as Bitcoin began to recover slowly in the subsequent year.

Nevertheless, not all of Dow’s forecasts regarding Bitcoin have hit the mark. As U.Today covered, Dow claimed in November 2019 that the primary cryptocurrency was on its decline. Beyond his projection, Bitcoin reached a new zenith towards the end of 2020 and, in 2021, soared to $69,000.

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Following an intense downturn, Bitcoin managed to reach an earlier unseen high of $73,737 this year, buoyed by the introduction of Bitcoin exchange-traded funds.

This April, the ex-hedge fund manager pointed out what he sees as duplicity within the Bitcoin sphere, highlighting how it has come to welcome Wall Street after previously being viewed as an adversary of the establishment.

On August 5, a widespread market disturbance precipitated by a dive in Japan’s stock market caused Bitcoin’s value to nosedive momentarily to $49,557 on the Bitstamp trading platform.

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Although Bitcoin has somewhat rebounded since then, its price still lingers under the eagerly anticipated $60,000 line, despite the Nasdaq 100 index having risen by 3.42% in the last five sessions.