Crypto Hedge Funds Bought Bitcoin At 'A Reasonable Level' During The Dip: Report

Hedge funds specialized in trading cryptocurrencies seemingly treated the latest Bitcoin BTC/USD dump as nothing more than a sale.
What Happened: According to a Friday Bloomberg report, former Morgan Stanley MS trader Felix Dian suggested that hedge funds participate in the crypto markets "to ride boom and bust cycles with diversified bets so clients don’t get killed at times like this (sic),"

His $80 million fund is up 14% in May and more than tripled this year, while Bitcoin lost almost 30% this month, but still being up 42% this year.

Dian explained that the fund kept liquidity and then was spent on buying Bitcoin when it was trading around $35,000 this week.

The emerging-market veteran who turned into crypto fund manager Charles Erith suggested that this was a good entry price.

“At $35,000, we felt it’s a reasonable level at which to be adding. [...] It’s obviously not regulated and it’s a very young asset, but I don’t think this is going to be a revisit of 2018 (sic)," Erith said.

Blockchain data company Chainalysis report cited by Bloomberg shows that professional investors treated the crash as an opportunity and bought Bitcoin while it was at a discount, which also helped keep its price from going further down.

See also: New Reports Of China's Crypto Crackdown Sparks Fears In Crypto Market As Bitcoin Falls To $37,000

Institutions purportedly bought 34,000 BTC on Tuesday and Wednesday, after selling as much as 51,000 BTC over the previous two weeks.

Co-founder at Three Arrows Capital in Singapore Kyle Davies gave his advice to investors, “Every time we see massive liquidation is a chance to buy. [...] I wouldn’t be surprised if Bitcoin and Ethereum retrace the entire drop in a week.”

Price Action: According to CoinMarketCap data, buyer pressure briefly pushed Bitcoin's price up to $42.172 earlier today before it dropped to the current price of $36,808, following the news of China's crypto crackdown.