Pantera Capital’s Digital Asset Fund underperforms Bitcoin year-to-date, marking serious declines downwards of 70 percent. The fund’s compound annual growth rate (CAGR) is also negative 50 percent.A
A Rocky 2018
The entire cryptocurrency market saw around $600 billion being wiped off its sheet in 2018. Bitcoin (BTC) [coin_schedule], the world’s largest cryptocurrency, marked a decrease of around 70 percent since its all-time high (ATH) values in January.
One of the largest digital asset hedge funds, that of Pantera Capital, released some alarming figures, outlining a 72.7 percent decline YTD. In August alone, the fund lost about 22.3 percent of its value. In aggregation, the fund is down 40.8 percent since inception, which is December 2017.
— Collin Crypto (@CollinCrypto) October 5, 2018
Earlier in April, the CEO of Pantera Capital Management Dan Morehead outlined that, at the time, Bitcoin was a “screaming buy.” At that point, Bitcoin was trading at around $9,000, more than 25 percent higher than its current price.
In June, Morehead once again noted that “it’s a very good time to buy” Bitcoin. Since then the cryptocurrency market’s first and foremost has lost yet another 10 percent of its value.
Not the Only Ones
Pantera’s Digital Asset Fund is not the only one in the red in 2018. Grayscale Bitcoin Investment Trust is also sitting at its lowest point since the ATH values in last year’s price rally.
Nevertheless, irrespective of the market’s poor performance in 2018, bullish sentiment can still be noted. According to a recent survey carried out by Fundstrat Global Advisors, institutional investors are bullish on the prices of cryptocurrencies, with 59 percent of them holding that prices will surge throughout an economic crisis.
Another rather interesting sentiment can be noted in Fundsrat’s survey. According to its findings, 54 percent of institutional investors hold that Bitcoin has already bottomed.
What do you think of the current state of the cryptocurrency market? Don’t hesitate to let us know in the comments below!
Images and media courtesy of Shutterstock, Twitter/@CollinCrypto/@dan_pantera.