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50% Bitcoin (BTC) Price Drawdown Perspectives Discussed by Top Messari Manager


Qiao Wang, Head of Product at Messari top-level cryptocurrencies and blockchain analytics team, bashed crypto hedge funds and here’s why.

Is Bitcoin (BTC) a last resort?

Mr. Wang stated that he knows that numerous cryptocurrency hedge funds decided to ‘long’ Bitcoin (BTC) as its price drastically declined. According to him, this strategy is vulnerable in terms of both macro market trend analysis and risk management.
Hearing that a lot of crypto hedge funds are *aggressively* long Bitcoin.

I think they are completely out of touch with what’s happening in the macro environment and clueless about risk management.

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Further, Mr. Wang explained that by an ‘aggressively’ managed strategy, he means the portfolio that longs as much Bitcoin (BTC) as it did before the recession. 

U.Today reported that the community of top-notch professional asset managers lack consensus about the future of the flagship cryptocurrency. Both bullish and bearish sentiments are powerful.

Your money, your risks

Although, Mr. Wang clarified that his criticism refers only to the management of assets that belong to limited partners. As for his own funds, he can afford even a 50% drawdown.

Hearing that a lot of crypto hedge funds are *aggressively* long Bitcoin.

I think they are completely out of touch with what’s happening in the macro environment and clueless about risk management.
Managing other people’s money is different from managing you own money.

Personally I can afford to take a 50% drawdown, but taking that much risk with LP’s money is totally reckless.
See Qiao Wang's other Tweets

If this dropdown occurs, Bitcoin (BTC) price will be as low as $3,125, which is lower than it was at the bottom of crypto Black Thursday. 
At the same time, the personal investment strategy of Mr. Wang reveals quite a different story: 
I’m personally not reducing my BTC exposure (for ideological and tax reasons).
Finally, he suggested a solution that is suitable for crypto hedge funds. According to him, it depends on the mandate of a given fund, but in general, he would put some assets in cash. 



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