{"id":365903,"date":"2018-12-19T12:00:37","date_gmt":"2018-12-19T12:00:37","guid":{"rendered":"https:\/\/wncen.com\/?p=365903"},"modified":"2024-06-11T07:32:03","modified_gmt":"2024-06-11T07:32:03","slug":"prominent-bitcoin-short-seller-covers-crypto-bottom-inbound","status":"publish","type":"post","link":"https:\/\/wncen.com\/news\/prominent-bitcoin-short-seller-covers-crypto-bottom-inbound\/","title":{"rendered":"Prominent Bitcoin Short Seller Covers: Crypto Bottom Inbound?"},"content":{"rendered":"

The sentiment expressed in the crypto market<\/a> has undoubtedly begun to shift in recent days. As Bitcoin (BTC) began its double-digit recovery on Monday, a number of prominent analysts began to excitedly exclaim that this asset class has finally shown signs of life. And while some have dubbed this uptick a “relief rally” or “bull trap,” some optimists have claimed that this bounce off year-to-date lows could spell doom for crypto’s bears.<\/p>\n

Case in point, one BTC short seller, and a preeminent one at that, recently covered a likely hefty sell-side position. This simple action, which has been publicized, had led the permabulls to ask the logical question \u2014 is 2018’s tumult finally biting the dust?<\/p>\n

Mark Dow Covers Bitcoin Short After Crypto Bounce<\/h2>\n

Nearly one year ago, just days after BTC breached $20,000 in an industry first, cementing cryptocurrencies as a potentially paradigm-shifting market, Mark Dow<\/a>, a preeminent hedge fund manager and\u00a0skilled chartist, took to his blog<\/a> to bash the Bitcoin market. In an entry titled, “So You Want To Short Bitcoin? Here’s Your Road Map,” Dow, using the age-old anti-crypto argument, lambasted cryptocurrencies for being situated in a bubble, before claiming that a dramatic correction could be bound to happen.<\/p>\n

The American economist first explained that BTC’s proposed use case as an “adoptable medium of exchange” is flawed, before explaining that if blockchain<\/a>-based assets do garner traction, it will likely be “emerging tokens.” Dow then drew attention to the Dotcom<\/a> Bubble and\u00a0the silver’s parabolic rally post-2008. He explained that these markets shared a basic pattern \u2014 a “parabolic, fevered top, followed by a sharp drop.”<\/p>\n

Using these historical events to give his sell-side call some precedent, the institutional player noted that odds of a Bitcoin selloff were high, adding that “lots of” downside could be in store for cryptocurrencies.<\/p>\n

Now, 12 months after his foreboding post, Dow is well in the green on his BTC short, likely up more than 75% on his well-timed bet. Yet, in an unexpected turn of events, the current head of a\u00a0Southern California family office took to Twitter on Tuesday to make an unexpected declaration. In a tweet seemingly poking fun at crypto’s zealous bulls, Dow wrote:<\/p>\n

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Today I say goodbye to the bitcoin short. Sad! #bitcoin<\/a> $BTC<\/a> $XBT<\/a>.<\/p>\n

— Dow (@mark_dow) December 18, 2018<\/a><\/p><\/blockquote>\n