Digital currencies plummet, Soros togo bottom fishing?

The Soros Family Fund plans to trade digital currencies and have yet to make bets. In January, Soros's hedge funds allegedly bought $100m of shares in blockchain e-commerce businesses. Soros himself said in January that digital currencies were bubbly, but did not expect a complete meltdown.

"Be greedy when people are afraid", and Soros may have to practice it once on digital currencies, Bloomberg reported, citing people familiar with the matter. The $26 billion Soros family fund plans to trade digital assets, and Adam Fisher, the fund manager responsible for its global macro trading, has received internal approval to trade digital currencies in the past few months, "but he hasn't bet yet."

A spokesman for the Soros family fund declined to comment on the news. Wall Street saw the news earlier this year that Soros's Quantum Fund, a hedge fund, had also invested in blockchain technology e-commerce company Overstock.com, Quantum Funds had bought $100m worth of the company.

Mr Soros said in January that digital money was not a stable instrument and it's high volatility prevented it from becoming a currency, making digital cryptocurrencies typically bubble, saying:

"Usually when the price of something goes out of this curve, it ends up with a big crash. But this time, as long as global dictatorship is on the rise, the outcome may be different, so the rulers of those countries see Bitcoin as a conduit for overseas assets."

Mr Soros, who thought Bitcoin might not fall to the bottom too quickly but form a relatively flat top, also favoured the use of Bitcoin's underlying technology blockchain.

Bitcoin prices have fallen by more than 40 per cent since Mr Soros's comments. Bitcoin's market value halved in the first quarter and its market capitalisation evaporated by more than $120bn, making the quarter the worst performing for Bitcoin and digital currencies as a whole.

Some people from the technical point of view, the situation of bitcoin is not so bad.

Forbes columnist Frank Holmes also said that, like U.S. stocks and other financial assets, after a slump, Bitcoin will inevitably have a strong recovery. Out of the Soros family funds plan to enter the news, Bitstamp trading platform Bitcoin trading price has a short-term rally more than 30 U.S. dollars, but the overall shock downward trend has not changed, still under 6700 U.S. dollars, fell more than 3% in the last 24 hours.