Rivemont crypto fund views bitcoin price above $6,000 as ‘crucial’ support
Rivemont Investments, managers of the Rivemont Crypto Fund, sees bitcoin price above $6,000 as a signal of strong and ‘crucial’ support but cautions that it is too early to tell if the rebound is only ‘temporary relief from a current trend.’
At the time of publishing, bitcoin price was up 1.50% to $6,407. In a note to its investors on Facebook, the Canadian actively managed fund, which has (at the time of its Facebook publication) 19% of its fund in bitcoin, noted that the market’s attention may be drawn to news that had less impact while ignoring more positive news.
Rivemont pointed to market over reaction to news related to debuts of bitcoin-based ETFs which it suggested may be exaggerated due to “a lack of understanding of the complexity of introducing such a financial product, or to the large number of projects currently under study by SEC.”
The fund manager countered there was much more positive news flying under the radar such as the announcement of a new global cryptocurrency platform called Bakkt created by the New York Stock Exchange’s parent company, Intercontinental Exchange (ICE).
Building a seamless global network
The platform announced at the beginning of August will use “Microsoft cloud solutions to create an open and regulated, global ecosystem for digital assets.” Bakkt will work with a number of organisations including BCG, Microsoft and Starbucks to create an integrated platform that enables consumers and institutions to buy, sell, store and spend digital assets on a seamless global network.
Rivemont holds the majority of its fund assets in cash and just 8.4% in ethereum. Bitcoin’s price rebound over the last two weeks Rivemont Investments writes is more technical. The firm indicates it “will be patient and wait for a strong reversal confirmed by several clear signals” before it redeploys the fund’s assets.
And adds, “It goes without saying that the support around $ 6,000 is crucial. A period of consolidation is normal and even desirable after the incredible rise seen in 2017. Any price above this threshold remains positive to our eyes for future price action.”