Declining Revenues Amid Price Dip
According to the Financial Times, cryptocurrency hedge funds are down by 35 percent so far in 2018. This decline is in stark contrast to 2017 when revenues grew by 2,700 percent. Such was the success of the market that a total of 167 firms were established in 2017 alone.
The digital currency market has had a rough 2018. Market prices have declined steadily with any hint of a rally quickly smothered by a sharp dip. Commenting on the situation, PwC cryptocurrency lead, Henri Arslanian said:
I expect the crypto markets to remain volatile for the foreseeable future. While retail investors may see volatility in the crypto markets as a downside, many crypto funds see it as an opportunity.
The Bitcoin price downturn epitomizes the current market situation. The number one cryptocurrency is currently trading at a third of its value during its ATH is mid-December 2017. Cryptocurrency hedge funds have lost their luster in the wake of the prolonged bear run of 2018. As of April 2018, nine firms had closed down while only 8 percent of the top 25 crypto hedge funds recorded any profits…