Trader who nailed the Bitcoin top just covered his short
Just as the euphoria surrounding Bitcoin was peaking last December, Mark Dow decided to short the leading digital currency. Almost a year to the day, and after a more than 80 percent decline from its record high price, Dow has closed out the trade.
“I’m done. I don’t want to try to ride this thing to zero,” Dow said in a phone interview Tuesday. “I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.”
Dow, a former International Monetary Fund economist who manages a family office in Southern California, bet that Bitcoin would decline in value right after Bitcoin futures began trading, pushing the price to a high of $19,511 exactly one year ago. Dow, who announced Tuesday on Twitter that he’s "saying goodbye" to the short, took profits twice already this year, he said.
The 2017 run-up in Bitcoin’s price can partly be attributed to the fact that many people didn’t understand the currency or its underlying technology, blockchain, Dow said.
“They just saw it was going up and wanted a piece of it. People’s imaginations can run further when they’re not tethered to facts, when they don’t understand the issue," he said.