Asset manager Ruffer Investment Management, who previously announced the complete withdrawal of capital from the bitcoin market, explained his decision by the “speculative fever” that swept the cryptocurrency space.
“We just felt it would be better to watch from the outside than from the trenches,” said Duncan McInnes, director of funding for Ruffer, who was involved in the Bitcoin acquisition.
Ruffer bought bitcoin at around $ 15,000 and completed a withdrawal in early April at $ 55,000. Shortly thereafter, the cryptocurrency underwent a sharp correction, bringing it to around $ 30,000 levels. McInnes says they have not tried to buy on a pullback yet. “When a coin like Dogecoin is still worth $ 40 billion, it’s hard to say that extra steam has left the market,” he added.
He also stated that after the cryptocurrency price doubled since the beginning of the year, the market looked overheated.
“There was a very clear increase in speculative behavior,” McInnes said.
Ruffer, under whose management wealthy investors donated about $ 34 billion, has poured bitcoin profits into gold and inflation-protected bonds. A company spokesman partially attributed Bitcoin’s rise to ultra-low bond yields hitting standard investment portfolios, 60% stocks and 40% bonds.
“The rise in the value of bitcoin was reasonably justified in the sense that buyers have to go to increasingly extreme measures to protect against inflation and decide what to do with this 40% of the portfolio, which does not generate income,” he added. The company previously stated that it does not exclude the possibility of re-buying bitcoin in the future.
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