Cryptocurrency analyst James Van Straten shared that he met with three separate hedge fund managers within the final week and the way the hedge funds positioned themselves after the sharp decline in Bitcoin.
In accordance with the analyst, funds that made important positive factors in the course of the decline have now utterly reversed their recreation.
Van Straten stated that every one the hedge funds he spoke with made important earnings from brief positions they opened in Bitcoin and Bitcoin-related merchandise over the previous week. In accordance with the analyst, the vast majority of the funds closed their brief positions on the finish of final week and the start of this week, returning to the lengthy facet.
The analyst said that this reversal could possibly be a big “bottoming sign” for the market. Van Straten additionally argued that Arthur Hayes’ criticisms of Tether are necessary for market psychology, and that Hayes’s declare that Tether is heading for chapter is unfaithful.
James Van Straten argued that Tether’s reserve construction does not help Hayes’s claims, pointing to Tether’s Q3 2025 report. The analyst argued that even when a 30% decline within the worth of its gold and Bitcoin portfolio wipes out Tether’s $6.8 billion buffer, the corporate would nonetheless have $158.4 billion in core property, masking 91% of its liabilities.
*This isn’t funding recommendation.
