A great deal of people have unique ideas about what happened after Bitcoin suddenly dropped below $65,000. The latest moves made by cryptocurrency hedge funds are thought to be a major reason for this.
The most current data shows that over the last 20 trade days, these funds have put a lot less money into Bitcoin. It has not been this low since October 2020.
From 2019 to 2024, the price of Bitcoin changed over that time. The trend lines show the major highs and lows. This chart at the bottom shows the moving one-month beta of crypto hedge funds around the world to BTC . This shows how closely the return on hedge funds is linked to the BTC price.
Hedge Funds Abandon Bitcoin
As the beta number goes down, exposure goes up. A value below one means there is less exposure. Hedge funds are not as affected by changes in the BTC price as they used to be, since the beta has dropped to 0.37.
This exit is like what hedge funds did before Bitcoin’s significant rise in October 2020. Some people think that hedge funds, which are known for smart investments and having access to high-tech data, are ready for more drops or instability.
They may be being cautious because their business plans are changing, the market is bad, or they have no idea what the rules will be. It’s likely that this lower risk made people want to sell, which is what pushed Bitcoin below the important $65,000 mark.
Markets are controlled by hedge funds, which manage huge sums of funds. This shows how important they are to Bitcoin’s recent drop: the investments they make have significant impacts on how the market feels and how prices move.
