European Hedge Fund Firm Plans to Buy $84 Million Worth of Cryptocurrencies

Brevan Howard, a European hedge fund asset management firm, is planning to invest in cryptocurrencies.

A person familiar with the sources revealed that Brevan Howard asset management company plans to invest 1.5% of its $5.6 billion hedge fund into cryptocurrencies, meaning that the firm would invest $84,000,000 into crypto assets.

Brevan’s crypto fund will have a diverse portfolio by focusing on several cryptocurrencies besides Bitcoin and Ether.

Brevan Howard is not new in the crypto field. Its co-founder Alan Howard has a wide experience in the field, investing his personal money into crypto assets, and has been a billionaire investor in cryptocurrency investment firm Distributed Global based in California since early 2018.

Tucker Waterman and Johnny Steindorff, co-founders of Distributed Global, will oversee the initial allocation of Brevan’s crypto fund.

Brevan Howard has made several bets in crypto firms over years but now is taking a direct exposure approach with crypto assets. The European hedge fund asset management firm recently bought a 25% stake in the US-based One River Asset Management, a $2.5 billion company whose crypto funds are backed by Alan Howard.

Brevan Howard, best known for its macro trading prowess, is now expanding its investments following a year of record gains.

What the Smartest Investors Are Doing

Brevan Howard has become the latest fund manager seeking to explore the boom in crypto assets. The move is the latest indication that crypto assets are going mainstream as the European fund manager joins the likes of Billionaire hedge fund managers Stanley Druckenmiller and Paul Tudor Jones who have turned into prominent crypto supporters, calling Bitcoin as a better store of value against declining fiat currency and a better asset than gold.

In May 2020, famed macroeconomic investor Paul Tudor Jones bought Bitcoin as a means to protect his portfolio from the negative effect of central-bank-induced inflation. He evaluated several types of potential investments, including stocks, commodities, and gold and concluded that Bitcoin was the best option.

In November 2020, billionaire hedge fund manager Stanley Druckenmiller bought Bitcoin as a means to make profit as the dollar continued declining in value.

Michael Saylor, Paul Tudor Jones, Jack Dorsey, Stanley Druckenmiller, and many other Bitcoin bulls are among the best and most respected investors now buying Bitcoin in huge amounts as the crypto continues appreciating as a store of value.

Elon Musk wants Coinbase to list DOGE

Yesterday, Twitterverse raised a question that caught the attention of Tesla CEO, crypto investor and Coinbase user Elon Musk: “Do you think Coinbase should activate Dogecoin on their platform? ” Musk replied: “Yes!”

Musk is no longer a stranger in the crypto world. In early February, US Securities and Exchange Commission filings revealed Tesla bought $ 1.5 billion in Bitcoin. Before that, Elon routinely pushed DOGE prices to the point where a single Dogecoin meme tweet was nearly 40% profitable in just half an hour.

What is Dogecoin?

Dogecoin was created by software programmers Billy Markus and Jackson Palmer in 2013. Two programmers created this coin in response to all Bitcoin advertisements. Their thoughts: if someone can create a coin, why can’t they?

The coin’s avatar is the chubby Shiba Inu dog, whose face stands out like a meme accompanied by cute English phrases, like “A lot” and “Very impressive”. This coin grew shortly after launch and was revered.

After the Bitcoin bull run in winter, celebrities like Musk pushed Dogecoin, which at its peak last month had a market cap of $ 17 billion.

Musk is not alone – celebrities are optimistic about DOGE. Earlier this year, rapper Lil Yachty announced he was investing one third of his savings into DOGE. The following month, he joined KISS bassist Gene Simmons and hip hop legend Snoop Dogg.

Subsequent analysis of Twitter metrics even revealed that Dogecoin is 1 point more popular than Bitcoin. In February, it accounted for 10.4% of all crypto mentions on the platform, while Bitcoin lagged behind with 10.1%.

All attention has resulted in some high price performance charts. On Jan. 27, DOGE was priced at $ 0.0078. By Feb. 8, that number nearly tripled to $ 0.074. A sharp correction ensued that pushed the price down to $ 0.047 on Feb. 23 – still 6 times more than where it was originally positioned.

Great, so why not on Coinbase?

Coinbase has always been slow to adapt to new coins. While Coinbase’s Asian rival Binance focuses on adding as many coins as possible at the cost of operating in the US, Coinbase has listed fewer coins to appease regulators at its home turf and doubling the ability to offer only a handful of currencies.

Executive editor Jeff John Roberts writes in his book Kings of Crypto that Coinbase considered adding more coins, including DOGE, after being overtaken by Binance as the most popular exchange in the world. gender in mid-2018, forcing Coinbase to revisit.

At this point, Coinbase is no longer a startup, they have a way of responding whenever they attempt to make changes. Noticing that there were no profits coming from memecoin, Coinbase executives quickly forgot about the plan to allow DOGE transactions on the platform.

Coinbase only started adding more coins after hiring tech entrepreneur Balaji Srinivasan in 2018 – but DOGE has never met their request.

The coin that started off as an elaborate joke about Bitcoin has now grown into the 15th largest cryptocurrency by market cap, with a dedicated team of developers behind it, and many new upgrades to the software.

Coinbase lost billions of dollars for not storing DOGE. But with its volatility, the exchange can defend its reputation as the white knight of the crypto space.

Both of these indicators suggest a large buy signal for Bitcoin

Bitcoin’s NVT (value transacted over the network) metric is used to determine whether an asset is up or down. However, using it in tandem with other metrics / metrics will work best.

What does NVT mean?

To put it simply, the NVT metric shows whether the network is being used a lot or not. If the NVT is high, it means the network is in demand and usage is high, it appears to be investing more in it. Conversely, if the NVT is low, it means that people are not using blockchain as much.

Usually, when the NVT ratio is low, it means less network usage and investors are not actively investing.

Source: Woobull

At press time, Bitcoin’s NVT is at a level last seen during the COVID epidemic’s prior period. This means that the Bitcoin network is not being used much, investors are not actively investing in Bitcoin.

It sounds like a bearish sign, but it’s not, and it even sounds absurd considering MicroStrategy and CashApp’s investments. However, as mentioned earlier, this data is recommended to be used in conjunction with other metrics.

Here’s why low NVTs are bullish for Bitcoin:

Low NVT ratio is often seen near the bottom: So the price can be expected to go higher. Last time, NVT at this low price was at $ 5,000. Since then, the price has more than doubled. So we can expect the same thing to happen even now.

Difficulty range – This metric takes into account Bitcoin miners and network difficulty, which is essentially the backbone of the Bitcoin network. This metric tends to increase when the bands are tight and is also a good time to invest. The bands consist of simple moving averages of the difficulty of the Bitcoin network so the rate of difficulty change can be easily seen.

The Mayer multiple index for Bitcoin has also lit up a bullish sign.

For the most part, the on-chain metrics for Bitcoin look strong and suggest Bitcoin will soon increase in price.

Technically, Bitcoin has seen 6 consecutive green candles. In the past, this has happened 15 times since 2015 and shows an average increase of 36.14% over the course of 14 days.

Hence, we can conclude that both on-chain engineering and fundamentals favor Bitcoin bulls.